Global Marketing Market Opportunities Developing

Question: Discuss about the Global Marketing for Market Opportunities Developing. Answer: Introduction The study consists of finding market opportunities while developing a country-product opportunity brief. International market opportunities in Austrian market will be determined in the study. The Australian company chosen for international expansion in Austria is Donut King. Donut King is the biggest doughnut franchise in Australia that does not have any presence in the Austrian market. The company will expand its business operations in Austria. The Fast food market is competitive in nature. Donut King has a high reputation in the Australian market. However, the fast food market in Austria has a high prospect of growth in the coming years. A strong value in CAGR is noticed in the year 2015. Hence, it is forecasted that big business of fast food will find many opportunities in the market. The revenue collected from the restaurant and fast food companies in Austria is projected to reach 10.2 billion U.S dollars by 2016. Therefore, Donut King will have enough opportunities for earning h uge revenue from the Austrian market. The study consists of different types of internal and external market opportunities of Austrian fast food industry. The Australian organization before entering into a new market will conduct extensive market research regarding much information like customer trend, buying behavior, political risks, etc. to expand their business operations. Situation Analysis Business environment Description of business climate will include analysis of microenvironment and macroenvironment. The microenvironment of Donut King includes customers, competitors, public, suppliers, employees and marketing intermediaries. Microenvironment factors usually create a different level of impacts on various companies. Competition of Donut King refers to the fast food chain present in Austria Subway, KFC, Dunkin Donuts, Burger King, McDonalds, Au Bon Pain, Taco Bell, etc. Customers refer to the target group of customers in Austria (Stender et al., 2014). Clients of Donut King include people from all ages. Youngsters are also fond of donuts, softies, ice creams. While the adult consumes all types of food items served by the company. Suppliers include the raw material providers of Donut King in Austria. The company has to maintain a good supplier relation that will help in the smooth flow of business operations. Public of Donut King includes the customer segment of Austria. It has a responsib ility of serving quality products to the community as a whole (Schermer, 2015). In this way, goodwill is maintained. Marketing intermediaries of the company include all the business houses and individuals that are responsible for promoting the brand name of Donut King in Austria. Employers include the people of Austria associated with the organization. Donut King has to formulate employee benefits and HR policies as per the regulations of Austrian government for them. Macro environment analysis of Donut King refers to PESTEL analysis of Austria. Political: the Political scenario of Austria is very stable. From the year of 1955, the democracy of Austria is at peace. The country is ranked sixth by World Competitive Yearbook 2010 among 58 industrial companies. The company on its business expansion will not face any political disturbance. Economical: Market economy of Austria is well developed. The country has a high standard of living. The economy of the country is tied to the economies of European Union. Regarding GDP, Austria is recognized as one of the fourteenth richest countries of the world. After 2009, the growth of GDP in Austria is seen to be increasing by 2% in the year 2010. The International financial crisis created some impact on the financial institutions of Austria. Largest banks in Austria at that time faced some issues in providing loans to the national companies of Austria. Donut King will not face any economic issues in Austria (Geppert et al., 2016). Social: Social factors include nature of the people of Austria. Donut King is an Australian company. However, Austrian people will have different taste preference compared to Australian customers. Spending habits, buying habits, decision-making procedure of Austrian people will fall under the social factors. Cultural: European culture is prevalent in Austria. High standard living along with classic living, shopping habits, etc. is prevalent in Austrian culture. In 2009, Austria was ranked as no. 1 in lifestyle quality (DeVoe et al., 2013). Technology: Dearth of using modern techniques by Austrian company is very high. Environment: Industrial pollution and transit traffic in the connecting road link between north and south Europe are the environmental issues in Austria. Legal: Labor organizations along with labor laws are unyielding in Austria that creates vital impact in businesses. (Figure: Created by Author) Market Analysis Customer segmentation of Donut King is based on demographic and geographic, psychographic and behavioral segmentation pattern. Demographic factors of segmentation include age and income. Donut King will target people of all age groups belonging to middle and higher income group. Geographic factors of customer segmentation include place of work and living area of the customers. Psychographic factors are one of the most vital areas of segmentation of customers in Austria (DeVoe et al., 2013). They are a lifestyle, social class and personal characteristics of the consumers of the food in Austria. Donut King targets people with high lifestyle standards and social class. Personal characteristics include the person who is prone to have an affinity towards doughnuts, coffee, ice creams and other fast foods in the market. Behavioral segmentation includes factors of usage pattern spending habits and desired benefits. The usage pattern of foods refers to the frequency of consumption of fast fo ods by Austrian people (Reisch et al., 2013). Desired benefits mean the expectations of the consumers from the company or the benefits enjoyed by the customers of the enterprise. The global fast food market is very saturated in nature. The Same trend is followed in Austrian market also. Many fast food retail chains in Austria are selling different kinds of foods and drinks in the market. The foodservice market is expected to grow by 2.0% during the tenure of 2014 to 2019 (Sunde Siebert, 2014). The economy of Austria is booming that enhances the growth of the market at a very fast pace. Customers are segmented according to the nature of the market as well as different trends of consumer behavior. Donut King will earn a huge profit, as there is a huge craze of fast foods among the people of Austria. However, the company has to struggle in its initial phase to uphold its brand in the Austrian market (Kelly et al., 2012). Competitive Analysis As it is already mentioned that global fast food industry is almost saturated in most of the developed countries of the world. Many companies of fast foods are running their business operations in Austria. As per sales volume, McDonalds, Burger King, Pizza Hut, Starbucks, Dunking Donuts, Wendy's, etc. acquire a good position in the global market. However, Donut King is one of the largest doughnut franchisees of Australia (DeFranco, 2014). These are the global companies of fast foods. Local fast food restaurants of Austria have a dominant presence in different places of Austria. People so prefer in eating and dining in local restaurants of the nation. SNockerl, Pommes Boutique, Wurstland Martina Verma, Balkan Grill Walter, Littly Italy, Stocker Metzgerei, etc. has a dominant landscape in the market. Researches had forecasted that McDonalds among all the other companies ranks 1st in the market regarding revenue and market share in 2015. Several major latest trends of innovation in food s, especially in burgers, help in upholding competition among the competitors (Yoder et al., 2016). However, Burger King has also portrayed a significant growth in Austrian market with the increase of franchise in the market. Revenue of global fast food industry is $581bn. Annual growth rate of the sector from 2011 to 2016 is 2.6%. People are becoming conscious about their diet habits. They are shifting their taste preferences from junk foods towards healthy foods. It is a reason for the decline in sales of the fast food companies around the world (Ibisworld.com, 2016). The European market is a vast market. There are many countries in Europe where people are consuming less fast food. Many businesses that can sustain in the market follow innovation. Organizational Analysis Donut King is the largest doughnut franchise in Australia. The company has managed to maintain a vital position among the Aussies. The company is famous not only for the adults but also brilliant for the kids. Donut King has a separate category of products for children that is an added advantage for the company. Nowadays, many companies have started the strategy of manufacturing some food items, especially for kids (Donut King :: About DK, 2016). However, the company has promotional strategies that increase the brand awareness of the company in the Australian market. The quality of the product along with its unique taste is the main competitive advantage of the company against other competitors in the target market. In Australia, many other fast food companies are specialized in selling the same ranges of products sold by Donut King in Australia (Czinkota Ronkainen, 2013). However, the company is successful in maintaining its number one position in the market. Following this strateg y, the company can earn a good reputation in the Austrian market. It is critical for Donut King to gain a clear idea about the trends and preferences of customers in Austria. Few modifications in the product can be done by the enterprise that would match the taste of local flavors of Austria. A hint of local flavor in the foods of Donut King will help the industry in gaining a greater competitive advantage in the market (Xu et al., 2015). The company attracts its customers by its vibrant bright, iconic pink color in the designing bold elements associated with the products such as packaging, containers, etc. The branding strategy of the company is energetic and playful in nature. It expresses the small actions of its customers as well as the performance of the enterprise (Akaka et al., 2013). Clients of Donut King like the designs of the donuts as it is intended in a creative way. SWOT Analysis The SWOT analysis of the company is formulated according to the situation analysis of the company in the perspective of Austrian market. The study will help the business to manage the risks of its target market i.e. Austria. Strengths: Strengths of Donut King includes its strong brand image in the Australian market, high quality of the products especially doughnuts and coffee, the unique design of the products, etc. Apart from this, the company is focused on excellent customer service along with improved promotional strategies and customer retention process. Weaknesses: Despite having a strong brand reputation in the market, Donut King still not have adopted globalization process in the global markets. The company can increase its range of products that can attract more customers. Opportunity: Fast food market of Austria has the immense possibility of growth of the enterprise. Donut King by its uniqueness in product designing and quality will be able to maintain its high predefined brand image in the market. People of Austria have strong preferences over fast foods that have unique taste and features in it. Threats: Apart from having many opportunities, there are many risks present in the Austrian market. Fast food market of Austria is occupied with many competitors like Dunkin Donuts, Mc Donalds, Starbucks, etc. These are the direct competitors of the company. Possibilities are there people may prefer doughnuts of these companies rather than Donut King. As it is new in the market and Conclusion The study consists of different competitor analysis and situation analysis of Donut King in the Austrian market. The company has to face many risks while adopting internationalization process such as risks in cross-cultural, commercial, financial, political and legal aspects. Donut King has to overcome these risks by following strategies of globalization in the Austrian market. It has to focus on technological dearth, change in management orientation, and communication transport. Extensive market research should be conducted while formulating strategies in different departments of operations to cope up with the problems that may come in the process of business operations in Austria. Donut King by following the above-mentioned analysis in a detailed way will successfully manage its globalization expansion in Austria. By keeping in track about the activities of rival companies of Austria, Donut King can formulate its new strategies in Austria that would increase the profitability of t he company in its Austria branch. References Akaka, M. A., Vargo, S. L., Lusch, R. F. (2013). 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