Final Report Minor IMCCM
Group 3 - DCG Roman Maininger Malte Johanssen Veronika Eilers Melanie Vรถlkner Christina Horstmann
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Summary During the minor IM/CCM the project group has been busy with the project to introduce the US sport clothing brand Saiphs Inc. on the German market.
This project was done because of several reasons. On the one hand to support Saiphs to expand and to enter the German market and on the other hand to give every group member the chance
to demonstrate that they fulfill every requirement of IBL. These reasons make it a Win-Win
situation.
This project was done by setting up an exhaustive analysis of all internal and external factors of Saiphs by making different analysis. After being aware of all necessary factors the project group
developed a complete marketing and communication plan as well as a strategy to enter the German market.
The organization of Saiphs was founded in 2009 in Florida, USA. The most important products
are compression gear and uniforms. They are sold via a web shop, which is also its main selling point. Furthermore, Saiphs is also working with local sport clubs and schools. In addition to that, Saiphs products are known for their high quality and great comfort.
Coming to the objectives of this project, it is to say that the project group wants to increase the market awareness of Saiphs in Germany and to build a well-founded base of customers. Also, to
get perfect knowledge of Saiphs products and a good insight into the company itself is an
objective. Further, it was necessary to gain detailed knowledge of the German sports market by various research methods as well as research about legal aspects and logistics in the first weeks of the project. Another objective was to improve the online marketing of Saiphs with regard to the behavior and habits of the German customers by developing a totally new website for the
German market. Last but not least to start establishing relationships with retailers and sport clubs in Germany to be on the German market in order to create brand awareness and to make it profitable as soon as possible.
The identity of Saiphs is to be an innovative company that designs affordable sportswear for young athletes, while the mission of Saiphs is to produce and sell superior athletic wear for a more affordable price than competing companies. The vision has been subdivided into three
parts: products, expansion and customers. That means that Saiphs wants to produce and sell
superior athletic wear made in the USA with high customer satisfaction on long and short-term 1/94
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base. Further, to enter the European market with a start in Germany and the Netherlands with
the focus on the customers by offering high quality to an affordable price. By this, they have created the image of a reliable company with products, which improve the workout and protect the body.
The SWOT analysis showed that the strengths of Saiphs are their (proved) high quality products
for a good price as well as their broad color assortment to fulfill everybody’s wishes. The
universal products of Saiphs are available via the web shop, which gives the opportunity to buy the products everywhere. Another strength is their customer friendly return policy, even if they
never had any complaints. Last but not least, Saiphs is financially stable, which makes expansions easier.
Talking about the weaknesses of Saiphs, it is important to say that it is a small company, which is
not known by anybody in Germany. In addition to that, its production is limited and until now, no marketing campaigns has been started to create brand awareness. Going on, their
distribution network is limited due to lack of corporations with retailers and the actual German
website is not useful for the German market. But these weaknesses can be reduced within a short period.
The opportunities of Saiphs are the big target market in Germany (at least 27 million registered
sportsmen). Also, sport became more and more important in Germany in the last decades, which increases the needs of sportswear and compression gear. In addition to that, the weather conditions in Germany are very favorable for compression gear all year long, as well as its
central position in Europe. Germany is a great country to start their expansion on the European market. Besides, Germany has a strong economy, even nowadays in times of the economic crisis.
It also offers a great political stability, which reduces the risk for Saiphs and the founded German-American business clubs have already shown successful co operations between these two countries.
Threats are the long lead times and problems/difficulties when importing products to Germany,
as well as higher transportation costs and diverse importation laws.
Continuing with the branch analysis, the project group executed the PESTEL analysis to gain knowledge about the important factors as the political, economic, social, technological,
environmental and legal situation in Germany. The outcome was that Germany is a democratic
and federal republic, which secures a kind of liberty to the people and assured a politically stable
environment. Further, the economic situation in Germany is still stable with a GDP growth rate 2/94
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of 0,3 % and a relatively small unemployment rate of 6,5 %. In addition, the infrastructure in Germany is perfect and offers great opportunities for Saiphs. Regarding social factors, it is
important to know that the consciousness for a healthy life has increased immensely, thus also for sports and sportswear. Also, according to Hofstede, the German culture is known for avoiding risks and demanding high quality, which is an opportunity as Saiphs products have the “Made in U.S.A” sign.
Concerning technology, it is to state that Germany is one of the leading countries regarding technology and has great potential to maintain this position up to 2020. As well in Germany
usually every person has easily access to the internet, which is of great importance as the web shop is Saiphs’ main selling point. Talking about environmental and legal aspects, it is to say that the climate in Germany offers great opportunities and its location is very favorable. The legal
situation in Germany is very structured and Saiphs has to deal with certain laws, some of them already now like the anti-discrimination law and some of them later, if they are totally positioned on the German market, such as the employment law.
Regarding the general German sports market, it is to say that it is now a very favorable moment to enter the market because of its well performance. For the first time since 2007 the annual revenue of the market has been higher than 6 billion Euros including a positive forecast for the upcoming years.
With the aid of Porter’s 5 forces model, the project group made a competition analysis. The outcome was that there is a threat of substitute products, as customers might use just regular
clothing to keep the body on temperature, as well as in this branch there is always the threat of new entrants. The intense rivalry among existing players could be an opportunity for Saiphs, as the big players as Nike, Under Armour, and Adidas compete with each other so that Saiphs can
benefit from this situation. Finally, the customers in Germany have a lot of power and a big influence by demanding lower prices and higher quality.
Talking about the competitors, one can say that there are already the big companies on the market as Under Armour, Nike and Adidas, who offer great products, but the prices of their products are very high as well. In general the products of these companies are at least 15 Euros more expensive than the Saiphs’ products.
Due to the fact that the company Saiphs does not provide any information about their suppliers
respectively distributors, it is difficult to analyze it but one can say that these actions are
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handled quite simple. There is a small stock and the products are shipped via regular mail to the customers.
Coming to the field research an online survey has been developed with the goal to get a realistic
picture of the behavior, habits, and preferences of the target group. The survey consisted of ten questions in total and has been a great success concerning the expectations of the project group regarding to the developed strategy and its response. It has been filled in more than 400 times
within a week. The questions were about sex, age, sports in general, money spent on sports- and
compression gear, buying habits, and preferences.
In addition to the survey, the project group also did personal interviews and field trials to analyze the needs and wishes of the customers and to get a picture of the market. These
interviews and trials were made via telephone respectively personally. For example, the project
group held a presentation at the soccer club SF Lotte, a semi-professional club in Germany, whose first team will be sponsored via compression shirts during the next season. In addition to
that, there are other clubs in Hamburg and Cologne that are also convinced by Saiphs products and are very interested.
The strategic marketing plan is divided into four parts, the product strategy, the promotion strategy, the distribution strategy, and the price strategy. The product strategy includes the development of a new look book of Saiphs products for the German market, which is published
on the Internet and is used for presentations to potential customers like sport teams and retailers.
Saiphs most important product group for the German market is the compression gear. Basically, there are two different kinds of it, the light weight and the pro weight. The light weight are made
of 85% nylon and 15 % elastane, these products are very light and almost give the feeling of not
wearing anything at all. The pro weights are made of 88% nylon and 12 % elastane. These products are firmer and stronger to protect the muscles. In total, there is a wide range of
products including shirts and shorts, which are available in short or long sleeves. The uniforms
of Saiphs are made of 100% polyester and are constructed with the most cutting edge moisture management technology available.
The products of Saiphs are cultural neutral; the reason for this is that Saiphs only needs to adjust
the size definitions, as Europe and the USA have different measurements. This makes the market
entry process way easier. Talking about innovation, the compression gear of Saiphs gives the most possibilities. An idea could be to find ways to make it even lighter in order to be even more 4/94
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comfortable and efficient. Another idea might be to make the gear better, especially for warm weather.
The promotion strategy includes that the project group developed several social marketing tools, such as Facebook and Twitter, which activities are all organized via Hootsuite. Social
network marketing is essential and therefore, the project group did this work very detailed. In connection to it, the project group developed a draft version of a new Saiphs’ homepage with the plan to build an even better one on long term. In addition, the project group developed a list for
Google adwords to make it easier to find on searching machines. To not only reach Generation Y, which is always connected with the internet, the project group planned to set banners and
billboards in different stadiums (of clubs that are working with Saiphs), but this makes only sense when the company is known. Therefore, the sponsoring deal with SF Lotte is a very
important start. There will be a Saiphs’ advertisement on their homepage and products can be purchased in the local fan shop. Another effective promotion tool is posters in public transport
in Cologne, Germany’s most important city regarding sports. The posters and billboards will only
display the Saiphs logo and a QR code, which leads directly to the website. Therefore, brand awareness and purchasing options are offered. Finally, it is important to promote the products personally; therefore visits by sport teams are of great significance.
To be successful on the German market, the supply chain has to be reconsidered. Due to the fact that Saiphs is still unknown, it is difficult to cooperate with retailers. Therefore, the distribution
is done via sport clubs in different areas. Thanks to this, promotion and distribution can be integrated, which can be seen by the agreement with SF Lotte, where Saiphs products can be purchased now. Nevertheless, Germans prefer to purchase their sportswear at retailers, thus, in
the future, it is inevitable to cooperate with them. So, the three places of purchasing will be sport clubs, retailers and the web shop.
The price strategy of Saiphs should be a mix of two strategies - on the one hand, the market
oriented method and on the other hand, the cost-plus method. By combining these strategies, Saiphs would still be able to make profit and stick to their roots as offering high quality products for an affordable price.
Talking about the communication plan and strategy, the project group thought of three ways to promote the products. These are promotion at sport clubs, point of sale promotion and
promotion in public transport. These three ways will lead to brand awareness and to the website of Saiphs and its social media presence. So, by this, there will be brand knowledge and 5/94
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purchasing options as already mentioned earlier. There are also other ways of promotion as the
developed Facebook campaign, where the customers can win Saiphs gear by taking pictures with their Saiphs clothes and share them and the Saiphs page on their Facebook profile. This is
challenging, which fits to Generation Y and it creates a Win-Win situation for everybody. Saiphs
gets new awareness as well as potential customers and the participants get the chance to win new sportswear.
When talking about logistics, there are two scenarios that need to be described. One is the actual
and the other is the desired one, once Saiphs is settled on the German market. At the time, when
Saiphs has totally entered the German market and when the number of orders has increased, the
logistic system has to be reorganized and then various factors play a role respectively transport, shipping, importation, etc. These factors are, amongt others, the production costs, transport and handling costs at the harbor, shipping, insurance, customs, taxes and warehousing costs. Some of
these are fixed and some are variable costs, which is also very important to take into consideration.
The estimation of costs of the first year, when introducing the products and settling down in Germany, the costs for 15.000 items would be 84.000 Euro in total. This would increase the costs
per item by 5,60 €, which would still fit in the pricing strategy and would still result in a good revenue. The current situation is totally different and leads to shipping costs of 1 € per item and long lead times.
Coming to the cultural factors, one can say that German business partners are more direct and focused on work rather than on relationships. Furthermore, Germany and the USA are both low-
context cultures and with more or less the same Power Distance Index. The German and
American business etiquette is quite similar; however, there are some things, which need to be taken into consideration. Concerning greetings and business dresses German and American
business people are acting very similar. A handshake and suits are common in both countries.
The hierarchy in business life is of great importance in both countries, which backups the theory of Hofstede concerning Power Distance. Moreover, one has to differ between work life and social
life; a work colleague does not necessary have to be a friend. When doing business in Germany, Saiphs will especially have to consider that there is a formal and informal way to say “you” (Sie,
du). As Germany is considered to be more monochromic, they also expect more space between one another, which is especially important when it comes to business life.
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The most significant difference between the two countries is the attitude towards risk. Germans, in general, are more concerned and prefer security instead of taking risks, which is obvious when making contracts with retailers, for example.
So in fact, there are not many differences between the German and American business culture.
Doing business in Germany should be relatively easy for Americans, when considering the named topics and differences and taking all important aspects into consideration.
In contrast to the business culture, there are still differences in the way sport is organized and the favorite kinds of sports between the two countries. While in America, sport is organized via
schools and universities, in Germany there are many sport clubs in the different areas per city/town. With regard to preferred sports, American football is the most popular in America, while Germans prefer soccer.
To give a conclusion, the project group can say that Germany offers good opportunities
concerning the potential target group and important environmental factors. The German sports market is booming and there is a high chance of success. All in all, the project group is convinced
that, if Saiphs will take all the analyses, the risks and suggested strategies, which are provided by this report, into consideration and follows the already started way, Saiphs will succeed in Germany and get a big foot in the market.
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Table of content Summary ................................................................................................................................................ 1 Table of content ..................................................................................................................................... 8 Introduction ......................................................................................................................................... 10 1
Company ...................................................................................................................................... 11 1.1.
Identity ............................................................................................................................................ 11
1.2.
Mission ............................................................................................................................................ 11
1.3.
Vision ............................................................................................................................................... 12
1.4.
Image ............................................................................................................................................... 12
2
Objectives ..................................................................................................................................... 13
3
Desk Research .............................................................................................................................. 14 3.1
SWOT analysis .................................................................................................................................. 14
3.2
PESTEL ............................................................................................................................................. 17
3.3
Market analysis ................................................................................................................................ 21
3.3.1
General analysis of the German sports market ........................................................................ 21
3.3.2
Market analysis of local retailers ............................................................................................. 22
3.4
4
5
3.4.1
Threat of substitute products .................................................................................................. 22
3.4.2
Threat of new entrants ............................................................................................................ 22
3.4.3
Intense rivalry among existing players ..................................................................................... 23
3.4.4
Bargaining power of suppliers ................................................................................................. 23
3.4.5
Bargaining power of Buyers ..................................................................................................... 23
3.5
Competitors analysis ........................................................................................................................ 23
3.6
Suppliers/distributors analysis ......................................................................................................... 24
Field Research .............................................................................................................................. 25 4.1
Survey .............................................................................................................................................. 25
4.2
Personal interviews .......................................................................................................................... 26
4.3
Field trials ........................................................................................................................................ 27
Strategic marketing plan .............................................................................................................. 28 5.1
6
Competition analysis (Porter’s 5 forces model) ................................................................................ 22
Product strategy .............................................................................................................................. 28
5.1.1
Current products ..................................................................................................................... 28
5.1.2
Ideas for future adaptations .................................................................................................... 29
5.2
Promotion strategy .......................................................................................................................... 30
5.3
Distribution ...................................................................................................................................... 32
5.4
Price strategy ................................................................................................................................... 33
Strategic communication plan ...................................................................................................... 34 6.1
Dagmar model – current situation ................................................................................................... 34
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How do we approach our (potential) customers .............................................................................. 34
6.2.1
7
Final Report
Marketing idea, with the use of Facebook as communication channel..................................... 36
Logistics ........................................................................................................................................ 37 7.1
Desired situation .............................................................................................................................. 37
7.2
Current situation .............................................................................................................................. 39
8
Cross cultural comparison between America and Germany......................................................... 40 8.1
General business matters................................................................................................................. 40
8.2
Differences in sport habits ............................................................................................................... 45
9
Implementation trajectory ........................................................................................................... 47
10
Financial consequences of the marketing plan......................................................................... 48
11
Conclusion ................................................................................................................................ 49
12
References ................................................................................................................................ 50
13
Appendix .................................................................................................................................. 53
13.1
SWOT ............................................................................................................................................... 53
13.2
Survey .............................................................................................................................................. 54
13.3
Results of Survey .............................................................................................................................. 55
13.4
List of contacts ................................................................................................................................. 59
13.5
Saiphs - Look Book ........................................................................................................................... 62
13.6
Facebook ......................................................................................................................................... 63
13.7
Twitter ............................................................................................................................................. 64
13.8
Hootsuite ......................................................................................................................................... 65
13.9
List of Social Media Data .................................................................................................................. 66
13.10
Website ....................................................................................................................................... 67
13.11
AdWords for German Website ..................................................................................................... 70
13.12
Website Banner ........................................................................................................................... 71
13.13
Sponsorship agreement ............................................................................................................... 72
13.14
QR Code....................................................................................................................................... 73
13.15
Price list ....................................................................................................................................... 74
13.16
Power Point Layout ...................................................................................................................... 75
13.17
Business Card............................................................................................................................... 78
13.18
Power point of cost analysis......................................................................................................... 79
13.19
Table of Cross Cultural differences ............................................................................................... 86
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Introduction During the minor IM/CCM, the project group DCG received the project to introduce the US sportclothing brand Saiphs Inc. on the German market.
Saiphs Inc. is a company, which has been founded in 2009 in Florida and is focused on high quality sportswear for an affordable price. The desire of the board of directors of Saiphs Inc. is to
expand and to conquer the German and Dutch market in order to increase their sales and turnover.
To be able to do this successfully, the project group set up a complete Marketing and Business
plan including the segments of communication, distribution, strategic management, and cross cultural factors.
Why did the project group ‘DCG’ draw up this report? This report has been written because of several aspects. On the one hand, as mentioned before, to support Saiphs to expand and to let the company grow and to enter the German market. On
the other hand, which makes it a Win-Win situation, it gives every member of the project group the chance to demonstrate that they fulfill on every requirement of IBL.
How did the project group ‘DCG’ do that? During the last five months the project group ‘DCG’ worked on their task, to set up a complete business plan for Saiphs to enter the European market with the focus on Germany.
The project group started with an exhaustive analysis of all internal and external factors of
Saiphs by making a SWOT-analysis. After being aware of the current situation, the opportunities
and threats, the project group focused on building up a strategy and a marketing communication
plan. Therefore, the project group developed an online survey to be able to get a picture of the target group and to determine the next steps concerning the strategy.
After analyzing the market and determining the strategy, the implementation took place, which
means that the project group went for it and got in touch with potential clients, as sport clubs
and retailers. This was done to create a customer base and to get brand awareness in Germany to establish the company in this market.
In addition to that, the project group set up new communication channels and possibilities for
customers to get and stay in touch with Saiphs, such as Social Network, a new website, and contact by E-mail and telephone.
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1 Company First, it is important to get a general picture of the company, which will be described in this chapter of the report.
The organization of Saiphs is an US based sports clothing company, which exists since 2009, and
has its headquarters in Florida, United States of America. The most important product group are
compression gear and uniforms. They are sold via a web shop, which is Saiphs´ main selling point. In addition to that, in the United States, Saiphs also works with school sport teams or local sport clubs. Moreover, the products of Saiphs are known for their high quality material, which feels great against the skin and contains properties to keep the muscles warm.
Now, the goal is to enter the European market via Germany and the Netherlands. In the past, Saiphs already started to enter the Dutch and German market, but the actual response has been rather low. Additionally, they did market research in the UK to gather information about possibilities for a market entry.
1.1.Identity The corporate identity is based on the assumption that an organization is seen as a natural, social person and that its behavior is evaluated like that.
The identity of Saiphs is to produce high quality sport clothes for an affordable price. They see themselves as a modern company designing for young athletes, sportsmen and different sport
teams. Their materials have often been tested and their products were developed in cooperation with Dr Amy Hobson in order to guarantee high quality.
1.2.Mission The mission of Saiphs is to produce and sell superior athletic wear for a more affordable price than competing companies that offer comparable high quality. In order to meet the needs and
wishes of all customers, as well in the Unites States of America as on international level, Saiphs
uses high quality material that feels great against the skin and especially keeps the muscles
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warm, which has been proven by Dr. Amy Hobson, MD from Seattle, Washington 1. The focus of
the company is compression gear and uniforms, so the goal is to best respond to sport teams, retailers and private customers, who are the company´s main customers.
1.3.Vision As the project group DCG works for Saiphs, the visions of the two parties are congruent. Further, the vision has been subdivided into three parts that are of special interest for the company – Products, Expansion, and Customers.
Products: Saiphs wants to produce and sell superior athletic wear made in the USA and focuses on compression gear and complete uniforms for sport teams, retailers and private customers. By this, Saiphs wants to assure high customer satisfaction on the long and short term.
Expansion: Up to now, Saiphs has focused on the US American market, especially Florida. The
long term goal is to enter the European market. Therefore, the project group DCG has been hired to expand the brand awareness of Saiphs and to establish a good base of customers on the short
term in Germany. In addition to that, another project group has been hired to do the same on the Dutch market to use those two countries as a gateway to Europe on the long-term.
Customers: The customers of Saiphs are of central interest, so meeting their needs and wishes is
a primary goal. In order to do so, exclusively high quality material is used. The quality and importance of it has also been proven by a doctor from Seattle 2.
1.4.Image Saiphs is seen as a reliable company that offers good quality for an affordable price. Especially the fact that there are hardly any returns confirms the good quality of different products and
leads to a good image of the company. Their products are modern and up-to-date and always
focus on the customer to improve their workout and to protect their body. 1 2
http://www.saiphs.com/site/index.php?main_page=page&id=28 http://www.saiphs.com/site/index.php?main_page=page&id=28&zenid=m83ocdusv37dhs16p9eo0ckhl1
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2 Objectives Having clear objectives of the project is essential in order to reach good results at the end of this minor. Those will be named in the following: •
The main objective of the project group is to increase the market awareness of Saiphs in
Germany and to build first relations with customers until the end of the minor (January 2013) for the company´s directors in order to successfully sell their products in •
Germany.
Get good insight into Saiphs and knowledge of their products within the first week of the
project via the directors and other information sources like the website. Needed
information includes their unique selling points, characteristics of the products, available colors and sizes, the market strategy for the American market, shipping methods and •
cost prices.
•
methods within the first 6 weeks of the project.
Gain detailed knowledge of the German (sportswear) market by different research Also during the first 6 weeks, do research about regulations with regard to importation
to the European Union, shipping and payment methods and other laws that have to be •
considered.
Improve online marketing of Saiphs within the first 8 weeks of the project. The German
version of the website needs an update and improvement and also other online •
marketing opportunities have to be analyzed and developed.
After the first 6 weeks of the project the research will be completed and a market entry plan and marketing strategy for the German market have been developed, with a special
•
focus on online marketing.
In continuation of the market research and development of the market entry plan and
the marketing strategy, constantly get in contact with possible business partners and •
clients in order to establish first relations with customers for Saiphs.
On base of all the named actions, start getting in contact with different sport clubs on the
German market in the second half of the project (November 2012), to develop brand awareness as soon as possible.
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3 Desk Research In this chapter, the project group will make detailed research in different areas. This includes the
SWOT, PESTEL, market, competition, competitors, and supplier and distribution analysis.
3.1 SWOT analysis When entering a new market, it is very important for Saiphs to make an analysis of its strengths,
weaknesses, opportunities and threats. In the following, the project group will explain the
different factors that influence the success of Saiphs while entering the German market. Additionally, you can find in appendix 13.1 a tabular overview of the SWOT analysis.
First, the project group analyses the strengths of Saiphs. Saiphs produces and sells sportswear. Its products are known for the good quality for an affordable price, which is an advantage in order to compete with brands as Adidas or Nike. The quality is proven by a doctor from Seattle, Washington and also by the fact that there have never been any returns. Furthermore, the
sportswear of Saiphs has a broad color assortment, so everybody’s needs can be fulfilled. The
material of the product is also tested and fulfills sportswear conditions perfectly as it is breathable, anti-bacterial, and able to wick. The universal products of Saiphs are available via
the web shop, which gives the opportunity to buy the products nearly everywhere. In addition, Saiphs also offers a good return policy 3. For example, if a customer is not satisfied with the product, or if he/she ordered a wrong size, there will not be any problem to return it within 30
days. Also, in case of manufacturer defects, even after usage, a customer may return the products without any problems.
As a last point, Saiphs is financially stable, which makes it easier to enter the market regarding new marketing strategies and building up customer relations.
Summing up, Saiphs offers products of high quality for an affordable price, which is interesting for a wide target group and therefore, it is assumable that Saiphs will have success, when entering the German market.
As every company that enters a foreign market, Saiphs also has to consider its weaknesses. One
of them is the fact that Saiphs is a small company, which is not known at all on the German 3
http://saiphs.com/cms.php?id_cms=11
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market. With regard to production, it will be difficult for Saiphs to compete with great brands as Adidas or Nike, as their production is limited. Then, until now, Saiphs has not started any marketing campaigns to attract new customers and make them aware of the new American
brand. In addition, internet has become essential, so a good web presence cannot be left out. Saiphs already has a German website, which shows its products, its history and further
information. However, the way it is set up now, it cannot be used for the German market, thus adjustments are required.
Going on, as Saiphs is still unknown on the German market, their distribution network until now
is still limited due to lack of corporations with retailers. Up to now, Saiphs does not have an actual stock in Europe, so the shipping takes at least two weeks plus the time needed for the production.
Finally, one can say that there are some weaknesses, however, most of them can be reduced within a short period as marketing campaigns can be started, which make the brand more known and the production can also be enlarged.
Coming to the opportunities of Saiphs, the project group can say that there are quite a lot when entering the German market. First, there will be a big target market with more than 27 million 4
registered sportsmen in Germany as most of the Germans are sportsmen and there are also
many sport clubs and retailers. Especially in the last decades, sport has become more and more important in Germany and this is why there is a high demand of sportswear and compression
gear. Team sports are very popular in Germany, which enlarges the need for uniforms. They need those uniforms while playing soccer, volleyball, basketball, etc. In general, uniforms in German teams change every year. So, the demand for uniforms increases again. Another
opportunity of the German market is favorable weather conditions that allow wearing compression gear all year long.
In addition to the need of the products itself, Germany is also a great country to start exportation
to, because it has a central position in Europe, which makes it possible to export to the other European countries as well. Besides, Germany has a strong economy, and even in times of the economic crisis in Europe, it is still very good situated in the international world of economy. In
combination with the strong economy, Germany as a federal parliamentary republic based on a representative democracy also offers a political stability (Instability risk of 3,8 out of 105), a
legal security, and tax incentives (investment grants, tax benefits, low interest loans or loans 4 5
http://www.dosb.de/fileadmin/fm-dsb/arbeitsfelder/wiss-ges/Dateien/Sport_in_Deutschland.pdf http://viewswire.eiu.com/site_info.asp?info_name=social_unrest_table&page=noads
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with a state guarantee for exporters6). In the past, there have also been founded German
American business clubs 7, which are the proof of a successful cooperation between the two
countries.
To come to a conclusion of the opportunities on the German market, one can say that Germany is
an attractive market, because there is a high demand on sportswear and has currently the most favorable economic situation of all European countries.
Finally, the threats Saiphs will face when entering the German market will be analyzed. There are not only opportunities, but also many threats when a company wants to enter a new market. First, Saiphs has to think about the fact that they produce in America, which results in long lead times and problems when importing the products to Germany. Also, there will be higher
transportation costs and the importation laws in Germany are quite diverse. Besides, it is
important to know that Germany has higher tax rates (VAT 19%; tax rate up to 45%) 8 than the
USA (VAT 0%; tax rate up to 35%) 9. In addition to this, the fact that America and Germany have
different currencies can affect a risk of the exchange rate.
As mentioned earlier, Europe is in an economic crisis at the moment, so there is no proof that the
German economic stability goes on like this. Furthermore, Saiphs will face a mature market with a lot of already existing competitors, which have a big power on the German market as Adidas,
Nike, and Under Armour. Finally, next to the cultural differences (which will be explained in chapter 8), there is also the difference of size between the two countries.
As one can see, Saiphs will also face many threats when entering the market due to cultural differences, the European economic crisis and the fact that the German market is mature.
Still, when summing up the whole SWOT analysis, the project group is convinced that Saiphs has
a high chance to be successful when entering the German market as the company itself offers
many strengths. Those, in combination with the high amount of opportunities the German market stands for, will convince the German customers.
6
http://www.worldwide-tax.com/germany/ger_invest.asp http://www.agbc.de/index.php?home 8 http://www.taxrates.cc/html/germany-tax-rates.html 9 http://www.taxrates.cc/html/us-tax-rates.html 7
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3.2 PESTEL As Saiphs wants to enter the German market and establish a good position in the German mindset, it is essential to find out about current political, legal and economic situation in Germany. Furthermore, technological and social aspects play an important role in order to figure out whether the products fulfill the Germans’ needs. Political
In order to find out about the current political situation in Germany, it is important to analyze several factors concerning stability and policies very carefully.
As far as the type of government is concerned, Germany is a democratic and federal republic which secures a kind of liberty to the people. So, political stability is guaranteed, not only because of the republic, but also due to the parliamentary democracy where power is separated and different parties operate in the system. 10 Further, it is almost assured that Saiphs does not have to fear corruption which is important for unknown companies on a new market.
With regard to Saiphs, this means that they can expect a politically stable environment including a stable work environment with an increasing purchasing power. 11 Economic Looking at the economic environment and the related figures, it is said that the overall economic
situation of Germany is still in an economic upturn, with a GDP growth rate of 0,3%, so the economic forecast is very positive.12 Furthermore, the “Gini coefficient”, which states the income
distribution in a country, is 27 in Germany, which means that income is equally distributed,
which suggests a strong middle class, so people are able to buy the products of Saiphs. Also, the unemployment rate in Germany has decreased in the last years and is currently at 6,5%, which are 2,79 million people 13, which leads to an increasing purchasing power.
Another important factor for Saiphs to know is the well founded infrastructure and excellent traffic connections including railways, highways and maritime routes, which offer good
opportunities for Saiphs to distribute their products everywhere in Germany, and everyone is able to obtain the products, whether people live in the city or in an urban area. 10
http://www.theodora.com/wfbcurrent/germany/germany_government.html http://www.frm-united.com/Political_stability.35.0.html?&L=1 12 http://www.frm-united.com/Strengths.34.0.html?&L=1 13 http://de.statista.com/statistik/daten/studie/1319/umfrage/aktuelle-arbeitslosenzahl-in-deutschland-monatsdurchschnittswerte/v 11
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Concluding that Germany is one of the most important European markets with a high income
and a large population, the potentially large target group in Germany may offer the possibility for a successful introduction of the products.
All in all, it is said, of an economical point of view, that there is a great potential for Saiphs to export compression gear and uniforms to the German market. Social
In order to find out about the potential target group on the German market, it is essential to know particular aspects of the German society. Not only cultural habits are of great importance, but also age distribution, the level of education and communication styles.
In the last few years, the consciousness for a healthy life has increased immensely in Germany. 14 So, the interest in healthy products in sense of food, outdoor activities or team sports is
constantly growing. Furthermore, the German educational infrastructure has been modified in the past.15 Thus, not only grown-ups are informed well about health, but also children learn early at school, how important a healthy and diverse nutrition is.
For Saiphs the growing popularity of doing sports and keep being healthy is recognizable
positive, due to changes in the German mindset. Living a healthier life includes working on one’s
personal fitness. In fact, people do more sports, so there is a higher demand for sports clothes with a larger market, especially for compression gear and uniforms.
Considering age distribution and population growth rate, one can say that the German
population is declining. The current growth rate is -0,2%, which is also notable in the distribution of age. 16 The main population (66,1%) belongs to the age group of 15-64 year old
people. The potential target group of Saiphs will be between 10 and 60, because people from this
age might be more attractive to focus on. 17 Younger people are mainly involved in team sports,
such as soccer or basketball and customers of an advanced age are more likely interested in fitness or jogging activities.
14
http://www.treugast.com/fileadmin/user_upload/PDF/Newsletter/09_10/20100920_Newsletter_Branchenticker_Gesundheit.pdf http://www.bmbf.de/press/3301.php 16 https://www.cia.gov/library/publications/the-world-factbook/fields/2002.html 15
17
https://www.cia.gov/library/publications/the-world-factbook/geos/gm.html
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Another aspect of the social environment is communication. According to Hofstede, German culture is known for avoiding risks and demanding high quality. 18 Therefore, Saiphs has good
opportunities, because their products state “Made in the USA”. Germans like to know, where products have been manufactured, and due to the location of production, German customer will have more trust in the quality of the products than in other products made in China.
When getting in contact with potential German retailers or sport clubs, it is necessary to know,
that the way business is done differs in the United States and Germany. This will be explained in more detail in chapter 8.
All in all, Saiphs needs to take social factors as well as economic ones into account while exporting to the German market. Technological Another important factor in order to analyze a market is the technological environment, and especially the use of internet, as this becomes more and more important in marketing.
In general, it can be said that Germany is one of the leading countries concerning technology and has great potential to maintain this position up to 2020. Especially with regard to automation, Germany has a high position on international level 19. On the other hand and looking at the digital Germany, it has to be mentioned that the German government has set up a strategy for 2015,
called “Digital Germany 2015”. The objective of this strategy is to even improve digital availability and strengthen competiveness, especially in rural areas of Germany and the companies operating in those areas. 20.
With regard to Saiphs, it is necessary to look at the availability and usage of internet in Germany,
as this might be a good and cheap promotion media in order to create brand awareness. Overall, it can be said that every person in Germany can get access to a fast internet connection. In fact,
the usage of the internet has increased by more than 50% throughout the past 10 years and is now at 75,60% (2012) 21 . Moreover, about 50% of mobile phones in Germany are smartphones and about 22% of the population possesses a smartphone 22. Most of those users are men and in
the age between 20-29 years. However, one has to notice that still most people use the internet 18
http://www.culturecrossing.net/basics_business_student_details.php?Id=22&CID=79 http://www.vde.com/de/verband/pressecenter/pressemeldungen/fach-und-wirtschaftspresse/seiten/2012-33.aspx 20 http://www.bmwi.de/Dateien/BBA/PDF/ikt-strategie-der-bundesregierung,property=pdf,bereich=bmwi2012,sprache=de,rwb=true.pdf 21 http://de.statista.com/statistik/daten/studie/13070/umfrage/entwicklung-der-internetnutzung-in-deutschland-seit-2001/ 22 http://www.digitalnext.de/immer-mehr-smartphones-in-gebrauch/ 19
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via a computer. 23 Another emerging technology and communication media used by more and more companies are QR-Codes in order to provide more information about a product.
For Saiphs, the growing importance of internet, Facebook (25 million users in Germany 24), and
QR-Codes should be very interesting and important, because those are mostly used by young
people who are the final clients of Saiphs and can be reached in a cost saving and fast way. Environmental
Environmental factors also play an important role for Saiphs, as the compression gear protects the muscles in summer and winter.
Talking about the climate in Germany, one can say that it is moderate and due to cold winters and warm summers, compression gear fits perfectly to the need of warming sports clothes for the German target group. 25 For example, soccer players in Germany have to practice and play outside during the whole season, whether it is cold or not. Therefore, Saiphs could use this
opportunity to offer the German target market an inexpensive alternative to A-Brands such as Adidas or Nike.
The last point is the central location of Germany in Europe, which offers a great opportunity for Saiphs in order to make use of this optimal accessibility to other European countries and their markets.
Legal
There are many legal aspects a company has to keep in mind when exporting to a foreign country.
Taking Germany as a target market into consideration, Saiphs has to deal with the consumer law, which is about the protection of consumers. 26 Concerning structure, consumers are in
disadvantage of merchants, because of a lack of knowledge about the product, the production,
components etc. Therefore, companies need to inform the consumers and clients about
everything that deals with the product, for example through the product information on the product. This law is applicable for Saiphs regarding a product description. 23
http://de.slideshare.net/dasMobileNetz/smartphone-nutzung-in-deutschland http://de.statista.com/statistik/daten/studie/70189/umfrage/nutzer-von-facebook-in-deutschland-seit-2009/ 25 http://www.germanculture.com.ua/library/facts/bl_climate.htm 26 http://www.hg.org/consume.html 24
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Furthermore, Germany is well known for its fair employment laws. 27 In this case, Saiphs would
not be affected by this regulation yet, because until now, the company is run by only one or two people without any employees in Germany. But, in the future, it can become more important when Saiphs opens an office or stock in Europe.
As a conclusion, one can say that it is essential for Saiphs to consider all the relevant factors in order to become successful. However, none of them will lead to severe problems.
3.3 Market analysis Now, a market analysis of the German market will be given. Here, the project group differentiated between the general sports market and a specified retailer analysis. 3.3.1
General analysis of the German sports market
The outcome of the general analysis of the German sport market is that, despite of the economic crisis, the sport market is performing very well. The figures show that in 2011, the annual
revenue has been higher than 6 billion Euros. This was for the first time since 2007 and market analysts predict an even higher number for 2012 and 2013. 28
Therefore, it is advisable for Saiphs to enter the German market now, because of the beneficial market situation.
To give a general overview, you find the top three retailers of Sportswear in Germany in the chart below. Retailer
Stores
Revenue
Karstadt-Sport
27 29
600 Million €
Runners Point
113 31
159,3 Million €
Intersport
1500 30
2,7 Mrd €
27
http://www.nolo.com/legal-encyclopedia/hr-employment-law http://www.derhandel.de/news/unternehmen/pages/Sportartikelhandel-Sportmarkt-6-Milliarden-Euro-Umsatz-sind-moeglich7107.html 29 http://de.statista.com/statistik/daten/studie/72664/umfrage/karstadt---zahl-der-filialen-nach-typ-seit-2007/ 30 www.intersport.de/unternehmen/profil 28
31
www.runnerspoint.com/unternehmen
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Market analysis of local retailers
Because of the market entry strategy of Saiphs, to enter the market via co operations with sport clubs and (their) local retailers, the market analysis is about the situation and amount of local
retailers in Hamburg, Osnabrück, and Cologne.
In Cologne there are 66 retailers for sportswear. In Hamburg there are 73 and in Osnabrück 35 32. In Germany, it is very common that local sport clubs work very close together with local
retailers. This means that sport clubs buy their equipment always at the same store. So this is the starting point and the market for Saiphs to get a foot into the German sport market.
3.4 Competition analysis (Porter’s 5 forces model) Also Porter’s 5 forces model is important to consider when entering a new market. The results of this will be given in this part. 3.4.1
Threat of substitute products
Talking about threats Saiphs has to fear from substitute products, one has to think about special thermo wear, which might lead to confusion of customers. In addition to that, regular clothes can
also be substitute product. In order to keep the body warm, an athlete might just use regular tights and shirts. Those substitutes might limit the profit of this particular branch.
3.4.2
Threat of new entrants
Saiphs itself is still a new entrant. However, there is always the possibility that other low price brands try to conquer the German market by offering comparable high quality like Saiphs. This can lead to loss of sales and customers for Saiphs and has to be kept in mind.
32
http://www.sportgeschaefte-in-deutschland.de/region/Hamburg.html
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Intense rivalry among existing players
There are already many competitors on the German market, like Nike, Adidas, and Under Armour. However, their products are more expensive for the same quality. So, surely there is
intense rivalry between the existing brand, however Saiphs has a good chance to benefit from the low prices they offer. 3.4.4
Bargaining power of suppliers
There is not any information available concerning suppliers of Saiphs. 3.4.5
Bargaining power of Buyers
Talking about potential customers on the German market, it can be said that Germans, when buying sport clothes mainly focus on price and quality. Also, they are able to influence the competition on the market by demanding lower prices and higher quality.
As a result, one can say that this analysis is not really applicable for Saiphs as the company is still very small and unknown.
3.5 Competitors analysis When entering a totally new market, especially when being an unknown brand, a company definitely has to take a close look at competing brands and the products they offer. In this part, the project group analyzes the compression gear of the most important competitors for Saiphs in Germany, namely Adidas33, Nike 34, and Under Armour 35.
With regard to all the three brands it has to be said that they are all very well known on the German market, especially for their high quality.
Taking a closer look at Adidas one can see that they have a great variety of products in the
compression gear sector with different components and color availability. In addition to that, there is a great variety of prices. The product that is most comparable with the products of
33
http://www.adidas.de/M%C3%A4nner-techfit-Preparation-Kurz%C3%A4rmliges-TShirt/UW758,de_DE,pd.html?dwvar_UW758_color=Black&cm_vc=pdpz1 34 http://store.nike.com/nl/en_gb/?l=shop,pdp,ctr-inline/cid-300/pid-552984 35 http://www.underarmour.com/shop/us/en/mens/shop-by-fit/compression
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Saiphs, when considering components is available for 39,95€ in the web shop. This is almost 15€ more than the products Saiphs offers for the same quality (85% polyester/ 15% elastane).
Looking at Nike, one will find the same results. Also Nike offers shirts with approx. 80%
polyester and 20% elastane, which is certainly a little better than the products of Saiphs, however for a price of 95€, which is almost four times the price of the Saiphs products.
As a last brand Under Armour has been analyzed. Again, the quality of Saiphs products is
comparable and prices are higher than those of Saiphs. For example, a long sleeve compression shirt for men is available for 55,95€ in the web shop.
All in all, one can say, that Saiphs has a great chance to gain customers due to their comparable high quality to Adidas, Nike and Under Armour, for a lower prices than their competitors.
3.6 Suppliers/distributors analysis In the following the current situation of Saiphs with regard to suppliers and the distribution of the products will be given.
Actually, the project group could not receive any information from Saiphs about their suppliers
as this has to be kept inside the company. However, the production site of Saiphs is in the southeast of the United States and from here the distribution is handled.
With regard to distribution it has to be said that, due to the fact that Saiphs is still a growing
company, the shipping is handled quite simple. Once the products are produced they are shipped
via mail to the owner of the company in Florida. There, he has a small stock and keeps them until he receives an order. Once he has an order, the products are simply shipped via regular mail to the customers. This takes about three to five days and is the cheapest as well as the simplest way.
The other possibility is that the products are ordered and still have to be produced, due to lack
of stock. In this case, the owner makes an order at the production site. However, still before going to the client, Saiphs always checks the product and then ships them to the customers.
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4 Field Research In order to get a good insight on the German market, not only desk research is important, but
also field research. By this, the project group has gained a very good knowledge about potential private clients, sport clubs, and retailers.
4.1 Survey To be able to analyze the target market, respectively the German sport market, and the potential customers of Saiphs, the project group developed an online survey with the goal to be able to get
a good and realistic picture of the behavior, habits and preferences. The complete survey and the results can be found in the appendix (appendix 13.2 survey and in 13.3 results of survey).
This online survey consisted of 10 questions in total and has been a big success, because of the
big amount of responses the project group received in a very short period of time. There were more than 400 responds within a week, which exceeded the actual amount of responses needed
and gave an even more detailed picture of the target group. The questions of this survey were about general information as sex and age class. In addition to that, it was important to know how
much money the target group spends on sportswear annually and what their focus is when buying sportswear, like brand, price, quality etc.
After knowing this, the project group wanted to get more knowledge about the buying behavior
and the attitude of the target group concerning compression wear. Therefore, the following
questions of the survey included the place where sportswear is purchased (Internet/ Retailer) and if the participants of the survey ever bought compression gear. Regardless whether this answer has been positive or negative, the next questions were about their general opinion of compression gear and how much money they would spend on it.
The closure of the survey has been filled with the questions, whether the participants are doing sport in a club, which kind of sport, and if they think that compression gear is useful in the sport they are doing. This was a great help for the project group to determine a strategy and on which areas and sports the project group can focus on.
The general outcome of this online survey has been a big success for the project group, because
of the fact that it fulfilled the expectations, the general picture of the German sports market and its suitability of the strategy that the project group developed, respectively had in mind.
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Thanks to this survey, the project group was able to analyze the private customer behavior.
4.2 Personal interviews Another option for the project group to get in contact with possible customers or retailers was to
call to sport clubs and retailers directly. So, the project group could do personal interviews with the managers and chief purchaser (a list of contacted clubs and retailers can be found in
appendix 13.4), in which they were asked about their interest on Saiphs and whether they are open to try, sell them in their shop, or buy them for their different sport teams.
During those interviews, there were two main problems, why retailers and sport clubs cannot cooperate with Saiphs: First, most of the sport clubs are under a contractual obligation. Most times those were the most important competitors Adidas or Nike.
Secondly, many small
retailers cannot take any decision about new contracts or purchases themselves, as they depend
on their headquarters. However, those were not really open to try a new, unknown brand while already offering famous brands as Adidas and Nike.
In addition, even if sport club manager or chief purchaser were interested in Saiphs and its products, they could not agree to buy them. However, the project group still arranged two co
operations with a soccer club in Lotte and an American football club and a hockey club in Hamburg.
In addition to those professional contact persons, the project group also talked to private
sportsmen in order to get a general overview to the openness and interest on a new brand. Here, the result was more positive, as sportsmen in general are open to try a new brand, especially if it
is cheaper than the famous brands Adidas, Nike, and Under Amour. This corresponds actually to the results of the earlier mentioned survey.
Thus, as a conclusion one can say that it will be the best idea to sell the Saiphs products to private sportsmen or to go to as many sport clubs as possible to present and convince the teams
and their managers. So, Saiphs reaches brand awareness and in the end, also retailers are open to cooperate with them.
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4.3 Field trials As mentioned above, during the personal interviews, the project group was able to convince two sport clubs to try the products of Saiphs: One is the soccer club SF Lotte, whose first soccer team
will be sponsored by Saiphs during the next season. This means that the team will try the
compression shirts and due to this field trial, Saiphs gets the opportunity to sell their products to the other teams as well, if they are satisfied with the quality.
The project group could also convince two other clubs, who are a hockey club and an American football club in Hamburg. Those are willing to buy the uniforms of Saiphs and therefore will try them during the next season as well.
Thanks to those three clubs, which will use the products of Saiphs, Saiphs has its first clients in the area of soccer, American football, and hockey. This will make it easier for them to gain other clubs as well, because they can argue with the satisfaction of the clubs and the good cost effectiveness.
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5 Strategic marketing plan Having done all the necessary desk and field research, the project group can now come up with a strategic marketing plan, which consists of the four P’s product, promotion, place, and price.
5.1 Product strategy As said earlier, Saiphs is specialized in compression gear and complete uniforms. In the
following, the project group will describe those products in more detail. Therefore, this part has been divided into current products and ideas for future adaptations. 5.1.1
Current products
Taking the cross cultural aspect into account, one can say that the products of Saiphs are concerned to be cultural neutral. The reason for this is that Saiphs only has to change the size
definitions, as Europe and the USA have different measurements for this. This makes it easier for
Saiphs to get a foothold on the European market, because the company does not have to invest
much money to adapt its products. In fact, it is even possible and used by many competing companies, like Adidas36 or Nike, to implement size tags that show different size measurements.
The most important products for the German market are compression gear. The German market is already quite mature with complete uniforms for sport teams, so the project group has
decided to mainly focus on compression gear, as they become more and more popular for athletes to use.
Basically, there are two different kind of compression gear, which is light weight and pro weight.
The light weight compression shirts and shorts are made of 85% Nylon and 15% elastane. Those
products are very light and almost feel as if the athlete were not wearing anything at all. Next, the pro weight compression gear is made of 88% Nylon and 12% elastane. These products are firmer and stronger to protect the muscles no matter if it is cold or warm outside.
For men, Saiphs will offer long sleeves compression shirts in pro weight and light weight. Also short sleeves shirts are available, which are the light weight kind. In the pants section, one can 36
http://static.lowyat.net/uploads/attach-12/post-287212-1314155331_thumb.jpg
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receive compression shorts and compression tights. Those are both available in light weight and pro weight.
With regard to women, the project group has decided to offer compression shirts with long and short sleeves in light weight and pro weight. In addition to that, compression tights in pro
weight will be offered. The shorts will be offered in two lengths, both in pro weight. One normal kind of shorts and one kind a little bit shorter, which is most used for volleyball. Finally, Saiphs will offer a special short sleeve shirt for women, the sueded cap shirt, which is made of 92%
Nylon and 8% Lycra. This shirt is not only very comfortable for doing sports but also suitable to wear during leisure time.
Coming to uniforms, those are offered for men. All of these products are made of 100%
polyester. The shirts are very comfortable for the athletes and are constructed with the most cutting edge moisture management technology available. This will help the athlete to focus on
the game and not be bothered by sweating and getting wet. The shorts are available in two
kinds, one with pockets and one without. The ones without pockets are ultra-light shorts
without any extra weight, which keep the perspiration away from the athletes’ body. Also the
shorts with pockets are constructed to keep the athlete dry and comfortable during the entire workout.
As a last product, Saiphs will offer skull caps. Those are made to keep the sweat off the athletes’ face so he or she can totally focus on the game.
For any further information about the products refer to the look book the project group created (appendix 13.5). 5.1.2
Ideas for future adaptations
With regard to innovation, the compression gear of Saiphs gives the most possibilities. One idea
could be to find ways to make the compression gear even lighter, in order to be even more
comfortable and efficient for the athlete when exercising. Another innovation could be to investigate a method to make the compression gear better, especially for warm weather. Improving the “breathing” of the fabric could lead to an improvement of the body temperature of the athlete and by that an improvement for the comfort of wearing such a shirt.
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Another idea could be to improve the surface of the clothes according to the lotus effect. This means that the clothes will have a super hydrophobic micro-nanostructured surface, which will
have a self-cleaning effect, as water droplets will pick up dirt particles. By this, not only the clothes itself would stay dryer but also cleaner, which might improve exercise results of the athletes.
Finally and with regard to cultural differences, it would be a great idea for Saiphs to adapt their
women’s wear to the Islamic cultures. In Germany, there live many people from the Islamic countries. Saiphs could sell the shorts and shirts, which are very likely to be too short for those women, in combination with an extra cape or pants. By this, women from the Islamic countries would be able to be more dressed than only with the shirts and shorts.
5.2 Promotion strategy Coming to the promotion part of the 4 P’s, the project group developed several social marketing tools to make Saiphs more popular in Germany.
Therefore, a Facebook profile ‘Saiphs Deutschland’ (see appendix 13.6), a Twitter profile ‘SaiphsDE’ (see appendix 13.7) and a Hootsuite (see appendix 13.8) account have been created
(the access dates can be found in appendix 13.9). Social network marketing plays an important role nowadays and it is a good opportunity for Saiphs to reach fans and customers all over
Germany as it is cheap and not specified on one location. Furthermore, fans or followers of Saiphs will always be informed about new articles, new offers or Saiphs in general. Also, there are programmed some announcements for Twitter and Facebook for the coming months, so that the followers stay informed about Saiphs.
In connection with the social media marketing, the project group created a draft version of a
new homepage for Saiphs Germany, as the actual homepage is not very attractive and the descriptions are not in German neither. For this, a computer specialist has been contacted, who
made a draft version of the website, which can be found under www.saiphs.pascallammers.de (see appendix 13.10 for screenshots). This person would also be available to create a totally new
homepage for Saiphs Germany. This is very important because the current homepage represents Saiphs rather badly instead of communicating the high quality of the products. In order to
develop a new homepage, the project group already searched for Google AdWords (See appendix
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13.11) to put on the homepage. This is important to get a good position in searching machines as Google and Yahoo, because internet users are searching for those AdWords.
To not only reach the Generation Y, but to also reach people of the older generations, the project
group thought about setting banners in different stadiums of Germany. But this only makes
sense once a company is known. Therefore, to start, the project group arranged a sponsorship
with the soccer club SF Lotte. The arrangement is that Saiphs will get an advertisement on the website of SF Lotte (see appendix 13.12 for website banner) and there will be made
announcements during half-time in order to get first brand awareness. Besides, Saiphs gets the opportunity to sell their products via the fan shop of SF Lotte and there will be made
announcements of Saiphs on the Facebook page of the club. In return, the first team of the club
will receive compression shirts. See the agreement in appendix 13.13. Concerning the future
plan of a banner, SF Lotte would be a nice option to start with as they have already offered this and Saiphs can profit from the contact the project group has already established.
Looking at SF Lotte, the average amount of visitors is 1150 per home match. This kind of
promotion would not only attract people from Lotte, but also from other cities in Germany due to the fact that SF Lotte plays in the fourth league of Germany. Currently, it is the leader of the league, so there is a good chance to play in the third league next season, which is the first
professional league in Germany. The banner could include a QR code with which visitors can directly go to the website of Saiphs (see QR code with link to Saiphs website in appendix 13.14)
in order to get to know the different products and to order them. Finally, on this banner, there could be written that the visitors can also purchase Saiphs products in the fan shop of SF Lotte.
Another effective promotion tool the project group recommends to Saiphs is to make advertisement in the city busses of Cologne. Cologne is the most important city regarding sports
in Germany as it locates the Sporthochschule Kรถln (University of sports) and thus, there are
many sportsmen in this city using busses and public transportation. Those advertisements in city busses should be held quite easy: just a logo of Saiphs with a QR code that leads to the homepage again.
Finally, it is important to promote the products of Saiphs personally. This can be done by visits at different sport teams. As the project group already talked to some clubs that are interested, it is a good to start with those clubs to present their products. So, the sportsmen can see and touch
the shirts and shorts of Saiphs. This gives Saiphs the opportunity to present and sell their products directly.
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5.3 Distribution Coming to the distribution of the products of Saiphs includes the production, shipping and delivery to the end consumer. In order to be successful on the German market the supply chain
has to be reconsidered, because here, different aspects concerning transportation and stock should be taken into account. As mentioned before, due to the fact that Saiphs is still unknown, it
is difficult to cooperate with retailers as they are mostly contracted to the big brand as Adidas and Nike. Therefore, up to now, the distribution is done via sport clubs in different areas (soccer, hockey, American football). Thanks to this, promotion and distribution can be integrated, which can be seen by the agreement with SF Lotte, where Saiphs product can be purchased now.
Nevertheless, as a result of the survey, Germans prefer to purchase their sportswear at retailers.
So, in the future, it is inevitable to cooperate with retailers. However, to convince the retailers, brand awareness has to be established before. Then, a warehouse will also become necessary
due to the increasing cooperation with retailers and sport clubs. This warehouse would save transportation costs, because larger amounts of clothes can be shipped from the United States to Europe by one single order. So, e.g. shipping costs do not have to be paid that often.
Finally, it is also important to establish a web shop as it becomes more and more popular nowadays, especially within the Generation Y.
The following chart gives an overview of the planned distribution channel:
Supplier of raw material
Sportswear or compression gear
Sport clubs
End consumer
Sportswear retailer
End consumer
Internet shop
End consumer
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5.4 Price strategy
Now, the project group will talk about the advised price strategy for Saiphs when entering the German market. Regarding Saiphs’ mission of being a high quality brand for an affordable price,
the prices have been calculated to be lower than the average prices of the competitors as Adidas, Nike, and Under Armour. As mentioned before in Chapter 3.5, the prices of these competitors
reach from approx. 40€ - 95€ per piece.
In dual pricing, domestic and export prices are differentiated. It is essential for Saiphs to make use of the cost-driven method, more exactly the cost-plus method, as there will be export-related
costs in form of personnel, market research, additional shipping, and insurance costs, communication costs with foreign customers, and overseas promotional costs37. Using the cost-
plus method, Saiphs will have an average costs of 13,26€ per piece, as calculated in Chapter 7.1,
which leads to a minimum selling price of ~15€ - 20€.
Also, market-oriented pricing has been chosen. Here, the company prices are compared with
those of the competitors, which leads to an advised selling price of 20€ - 30€ per piece as the
mission of Saiphs is to offer good quality product for an affordable price (please see price list in
appendix 13.15)
Furthermore, Saiphs has to take the exchange risk into account as the USA and Germany have different currencies. As the value of the Euro increases steadily in comparison with the value of
the USD, it is advisable to enter the German market 38. Additionally, in case a retailer wants to sell the products of Saiphs, it is common to sell the products at 70% of the retail price.
To sum up, the project group used a combination of a cost-based and market-driven approach to calculate the selling price for Saiphs products on the German market.
37
Page 358, Czinkota, Michael R.; Ronkainen, Ilkka a:, International Marketing, 8th Edition, Mason (USA), Thomson South-Western, 2007 http://de.finance.yahoo.com/echarts?s=EURUSD%3DX#symbol=;range=19990101,20130107;compare=;indicator=volume;charttype=area ;crosshair=on;ohlcvalues=0;logscale=off ; 38
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6 Strategic communication plan The next chapter is about the strategic communication plan respectively how the project group
recommends Saiphs how to communicate with the (potential) customers. Here, it is important to
know in which step of the Dagmar model Saiphs is right and how they can reach the last step, which is brand loyalty.
6.1 Dagmar model – current situation Up to know, one can say that Saiphs is not known at all on
the German market. The objective of the project group is to
first build brand awareness in order to make Saiphs a successful brand in Germany.
The approach how to first get brand awareness and finally brand loyalty will be explained in the following part.
6.2 How do we approach our (potential) customers The project group will seek contacts with sport clubs and later on also local retailers. In Germany, it is often the case that sport clubs are working very close together with local retailers concerning clothing, equipment etc. In order to present the concept and the products to sport
clubs and retailers, a Power Point Presentation in the design of Saiphs has been developed. (see appendix 13.16). Moreover, business cards containing important contact information of Saiphs will be delivered to the management of the sport club or retailer to exchange information and keep in contact (see appendix 13.17).
Therefore, the strategy of Saiphs is to make promotion at the sports clubs, which wear the
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advertisements on the website, announcements during half-time, or a banner at the side of the
pitch. At big sport fields, every week, different people interested in sports like guest teams and guest supporters visit the stadium. So, the effect of these promotion tools is to communicate Saiphs’ website and Saiphs and its products in general to get brand knowledge/comprehension.
The website provides two options for the potential customers. The first option is to purchase the
goods of Saiphs directly via the website. And the other one is that Saiphs provides the information about the retailers where the goods of Saiphs are available. Promotion at sport clubs
Point of sale promotion
Brand awareness
Promotion in public transport
Saiphs is a small company, but promotion and the creation of brand awareness are essential. Therefore, the strategy is as well to promote with posters in public transport systems. In cities, thousands and thousands of people use public transport every day. So, if these people see from one day to another the new interesting Saiphs poster, they will be aware of it and could check the website easily via the QR code. Website Brand knowledge
Purchasing options
Retailers
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Another promotion objective for Saiphs will be the Point of Sale promotion. As mentioned
before, the plan is to get in touch with retailers later on as well; therefore, we want them to sell
the products of Saiphs in their stores. To make customers of the retailers aware of a new product, the plan is to be present in stores with posters, stand-ups etc. With this strategy, customers will see the products easily and will get motivated to take a look at them. 6.2.1
Marketing idea, with the use of Facebook as communication channel
To promote the products of Saiphs and create more and more brand awareness, the project
group thought of a promotion campaign on Facebook. The idea is to promote the campaign on
the Facebook page with the support of the already existing customers to create a win-win situation. Therefore, it is a competition where every client can win a complete dress of Saiphs wear.
The competition is about to take the best (sport) picture while wearing clothes of Saiphs and adding these photos to the Saiphs page on Facebook and as well sharing it on his/her own page.
The benefit of this campaign is that Saiphs can reach a big group of potential customers without
doing anything and to create brand awareness. In addition to that, this campaign is a challenging event, which totally fits to the target group (Generation Y).
As mentioned in the part of promotion, the project group created a profile on Hootsuite through which this campaign can be programmed. So, one can save time and publish the campaign on
Twitter and Facebook at the same moment. By this, the project group makes sure to manage all social network communities in an integrated way.
As a conclusion, one can say that by implementing this communication strategy, Saiphs will have
a great chance to fast get brand awareness and finally brand loyalty. Social network marketing is the new way to attract the Generation Y, which fits perfectly to Saiphs limited amount of money for investments.
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7 Logistics In this part of the report, the project group is about to describe two scenarios concerning the cost analysis. The first one is the future vision according to the plan, after Saiphs is established in the European market and the second one is the actual one.
7.1 Desired situation In business, it is of great significance to be aware of all factors, which play a role in the
production, transport and promotion of goods. It becomes even more complicated and more
detailed when it is about international business respectively the import and/or export of goods between continents.
Until now, Saiphs is only operating in the United States and did not have any experience in doing
business internationally. Therefore, it is of great importance to set up a logistic and financial plan including all the cost factors, which will arise.
After doing research at several companies in Germany and after personal interviews with employees of logistic departments, the project group was able to set up a complete list of factors,
which produce costs and are inevitable when exporting goods. This list includes the following factors:
I. Production costs: Everything needed to produce the product (raw material, workers, fix costs of the production place) Packaging costs (material for packaging, palettes etc.)
II. Transport costs to the harbor: Costs which need to be paid to the express company
III. Handling costs at the harbor: Including all the work that need to be done to get the delivery from the truck on the ship (incl. all paper work) IV. Export customs entry: Amount of money, need to be paid to export goods V. Sea fright: Transportation costs of the shipping company
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VI. Insurance: The Insurance, to cover all possible risk factors
VII. Customs: One has to pay an amount of money on every good to be allowed to import it (12 % in our case, but the percentage depends on the country of production)
VIII. Importation VAT: An item needs to be taken into account, but it is just a transitory item and therefore not a real cost IX. Transport costs to the warehouse: Amount of money, need to be paid to the express company
X. Transport to the retailers: Amount of money, need to be spent on delivery costs to the retailers/customers
If Saiphs grows to a size where it is not possible to manage everything as it is done now, there
are a few factors, which need to be added to the list. These factors are:
I. Warehouse costs: Rent for the warehouse, fix costs like electricity, heater etc
II. Office costs: Administrative office costs (taxes, office fix costs)
III. Employee at the warehouse and office: Packaging, administrative tasks, customer service, warehousing The project group left this part out for the first calculations respectively estimation of costs because of the fact that there is already a small stock located in the Netherlands, which could be used as well for Saiphs Germany.
When following these necessary steps, it is possible to make an estimation of the costs per year,
when exporting/shipping a certain amount of products to make it profitable. This estimation would be as follows:
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Estimated costs 1st year
in Euro
Variable/Fixed costs
Production costs p. delivery
€ 52.500
F
Handling costs (USA)
€ 300
V
Transport costs (USA) Export customs entry Sea fright
Customs (on the value of goods) Insurance
Handling charges (Hamburg)
Transport costs -> warehouse
Transport to retailers/customers Marketing costs Total
€ 300
€ 5.000 € 2.000 € 6.300 € 1.575 € 225 € 300 € 500
€ 10.000
V F
V F
V V V V V
€ 79.000 39 40
The warehousing and administrative part is still done separately, at a point, when Saiphs reach this amount of sale, a bigger warehouse and more employees are inevitable.
Even with these extra costs, Saiphs would be able to generate satisfying revenue. The costs per product would increase by 5,26 €, which leads to a total price of 13,26€ per product, as the
production costs regarding Saiphs information is around 8€ per piece (10 USD). However, Saiphs will still make profit if they act according to this plan.
For more information, refer to appendix 13.18.
7.2 Current situation At the moment there is no regular transport of goods from the United States to Europe. Therefore, if there are orders or if there is a need of certain goods, they will be shipped normally
with costs of around 1 Euro per item. In addition to that Saiphs is already registered in the
Netherlands and has a certain location to storage the goods. But furthermore there are no business relationships with any clubs, retailers, clubs, or logistic companies. 39 40
Personal interview with an employee Geodis Wilson Hamburg Personal interview with an employee of logistics Edeka AG Hamburg
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8 Cross cultural comparison between America and Germany When entering a foreign market, it is essential to consider the differences between cultures. In the following chapter, the differences between the American and the German business culture
will be explained. In additions to that, a closer look has been taken at differences between sportsmen.
8.1 General business matters In the following, the project group will describe and analyze the differences between the German and American business culture.
In order to get a good start, it is wise to take a look at the two countries on base of their cultural
dimensions according to Geert Hofstede and Edward T. Hall. Based on this, the behavior and etiquette of business in Germany and the United Stated can be further explained.
The cultural dimensions of Geert Hofstede are power distance, the degree of individualism, masculinity vs. feminism, the degree of uncertainty avoidance and the degree of long-term
orientation of a country. In the following charts those dimensions are visualized for Germany and the United States of America 41. Power distance Individualism Masculinity Uncertainty avoidance Long-term orientation
United States
Germany
40
35
62
66
91
67
46
65
29
31
100 80 60 40
Germany
20
United States of America
0 Power Individualism Masculinity Distance Index 41
Uncertainty Avoidance
Long Term Orientation
http://geert-hofstede.com/united-states.html
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Further, the cultural concept of Edward T. Hall is important to consider, in order to understand a culture. The aspects of this theory are the communication style, proxemics, meaning the needed space when interacting with someone, and the perception of time in a culture. The general distinction here is made between high and low context cultures
As shown in the image below 42, one can see that actually Germany and the United States both
concerned to be low-context cultures, which means they are quite similar. Though, Germany is considered to be more towards a low context culture. This means that concerning time, the needed space between two persons
and the overall context of a message, Saiphs will most likely not encounter
problems, when doing business in Germany. However, it should be
considered that German business
partners might even be more direct and focused on work rather than on
relationships than Saiph´s managers are used to in America. 43
As it becomes obvious by looking at the different dimensions, the American and German
Business etiquette are quie similar. However, still there are some things, Saiphs should consider, when doing business in Germany. In the following the project group will therefore point out those differences and explain them with regard to Saiphs. A more detailed chart with comparisons between Germany and the United States can be found in appendix 13.19.
First, the overall appearance of a business person is important. However, in general, one can say
that the business dress code between Germany and America does not differ very much. In both
countries, it is essential to dress in a formal way, including a suit with a matching tie and leather shoes. Accessories should be chosen carefully and match the overall classic style. For women, it
is important to not show too much skin in order to appear professional44. This can be explained
by the high degree of masculinity and individualism in both cultures. Especially in the United
States, individual acknowledgment is very important, which includes a professional 42
http://www.genderwork.com/images/flags.gif http://changingminds.org/explanations/culture/hall_culture.htm 44 http://www.wiwo.de/erfolg/knigge-stilblueten-und-fettnaepfchen-in-deutschland-seite-3/5493022-3.html 43
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appearance 45. With regard to Saiphs, it should be concerned that the degree of individualism in
Germany (67) is significantly lower than in the United States (91), though people still appear very professional and rather cold.
Concerning greeting each other, in both countries, a strong handshake is common, maintaining enough space of about an arm´s length 46, which supports Hall´s theory of low context cultures,
where generally people prefer to maintain enough space between each other. In addition, eye contact and a friendly smile are crucial to make a good first impression. There are no greeting
differences between men and women. However, Saiphs needs to consider that especially in Germany, hierarchy determines the order of greeting each other, no matter whether in private or business, the person that is lower in the hierarchy presents himself letting the higher positioned person decide how to great him. Age does also influence the order of greeting;
younger people present themselves first 47. By this, the similar degrees for the power distance
index (United States 40, Germany 35) are explained.
With regard to business gifts, there is quite a difference. In Germany they are obligatory whereas in America not expected, but still appreciated 48. However, in America, they should not exceed an amount of 25$ and homemade gifts are prestigious 49. This is different in Germany, where a
bottle of wine or flowers are fine. Also, in Germany, one should keep in mind the increasing fear of appearing corrupt. Especially the concern of Germans of being seen as corrupt can be explained by the high degree of uncertainty avoidance (65), which is related to their behavior of
worrying. Saiphs business managers should consider that Germans do not like the unknown and worry about everything, especially money, the future and appearing corrupt.
Coming to business cards, in general using them is common in both countries, however sizes
differ. German business cards are a little shorter, but higher. Business cards should contain the most important information about the company and the contact information about the business partner itself. The way of using business cards differs, because in Germany it is quiet usual to
exchange them already when greeting each other. In America it is more usual to add them to an appreciation letter after a meeting 50. When handing over a business card, it should be directly
readable and the receiving person should study the card in both countries. It is necessary to 45
http://www.path2usa.com/dress-code-in-us http://www.elementalenglish.com/2012/02/greetings-in-america/ 47 http://www.wiwo.de/erfolg/knigge-stilblueten-und-fettnaepfchen-in-deutschland/5493022.html 48 http://www.wiwo.de/erfolg/knigge-stilblueten-und-fettnaepfchen-in-deutschland-seite-4/5493022-4.html 49 http://www.cyborlink.com/besite/international_gift_giving.htm 50 http://www.visitenkarten-inspiration.de/usa-und-gb-3-%C2%BD-x-2/ 46
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handle a business card with respect; and especially women should not just drop it into their hand bag. 51
Another topic to consider is the importance of hierarchy in business life. In America as well as in
Germany hierarchy is essential, which backs up the theory of Hofstede that power distance is quite high in both countries. The head of a group always leads a discussion and decides for the
final result. Moreover, one has to differ between work life and social life; a work colleague does not necessary have to be a friend. Hierarchy is also related to how to address each other. Titles and educational achievements are supposed to be known and used 52. When doing business in
Germany, Saiphs will especially have to consider that there is a formal and informal way to use
the way “you” (Sie, du). In general, “Sie” is used to address strangers, business associates, acquaintances, and for most situations outside the family. It is advisable to rather be too formal than too familiar and wait for the counterperson to offer the informal addressing 53. This can
certainly be explained by the earlier mentioned monochromic cultural behavior according to Hall. As Germany is considered to be more monochromic they also expect more space between one another, which is especially when it comes to business life.
The most significant difference between the two countries is the attitude towards risk. This
degree of uncertainty avoidance is 65 for Germany and 46 for the United States 54. This means
that Germans in general are more concerned and prefer security instead of taking risks which is very likely to become obvious when making contracts with retailers for example 55. Saiphs
should be aware of the fact that German retailers and sport clubs will ask for samples and might
even want to try them some time before buying them. In addition, making contracts will be
influenced by this. As Saiphs is a totally unknown company and brand and moreover outside of the European Union, German business partners will be very careful, especially about payment conditions, so Saiphs should be aware of this.
Besides making contracts, the risk attitude is also recognizable in the way of advertising. In both
countries, the main focus lays on informing consumer about the products and its benefits. However, in Germany, it is even more important for an advertisement to communicate security
while in America the focus lays more on hard sell, with direct information about the product without special attention to safety but more on being better and bigger. 51
http://www.visitenkarten-24.org/visitenkarten-knigge.htm http://www.communicaid.com/access/pdf/library/culture/doing-business-in/Doing%20Business%20in%20the%20USA.pdf 53 http://www.german-way.com/friends.html 54 http://geert-hofstede.com/united-states.html 55 http://www.german-way.com/angst.html 52
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The next point is the time concept56. Although, there is not really a difference, this is an
important topic to consider for Saiphs, when doing business in Germany 57. As both countries are monochromic cultures, according to Hall, punctuality and not spending too much time on small talk is essential and highly valued. However, as German have a high degree of uncertainty
avoidance (65), a very good planning is expected and moreover, last minute changes and
surprises are not appreciated at all. In fact, Germans want to meet their goals and stick to a precise plan, which might appear to Saiphs, which is a rather informal company, as very strict and rigid.
The concept of time is certainly in connection with small talk. As said, because of being
monochromic cultures, Americans as well as Germans do not spend too much time on small talk
and are not really interested in getting to know the business partners private life but rather use small talk for a warm-up. Therefore, in general, positive or neutral topics like the weather, city visits or recent events are good topics 58. When meeting a German business partner, Saiphs
managers should definitely avoid talking about the Second World War. Even though, people in
Germany are not as sensitive to this topic anymore it should still be avoided, as it is still not a very common topic, neither amongst Germans 59.
Related to the topics that are good to use for small talk are the general social values of a country.
As mentioned before those are in general the same, however it has to be pointed out that America still is considered to be a culture where people prefer warm and good relations 60. This
signifies for Saiphs that they might see German business partners as very cold and reserved. On
the other, Saiphs can rely on the German importance of duty 61. This means that when a business
partner assures something that he or she will definitely stick to this and fulfill his or her duties.
Summing it up, as said, there are not many differences between the German and American
business culture. In fact, doing business in Germany should be quite easy for Americans, when
considering the named topics and differences, especially the avoidance of risk in Germany, which is the most significant difference between the two cultures.
56
http://www.communicaid.com/access/pdf/library/culture/doing-business-in/Doing%20Business%20in%20the%20USA.pdf http://www.todaytranslations.com/doing-business-in/germany 58 http://www.task.fm/small-talk-topics 59 http://www.todaytranslations.com/doing-business-in/germany 60 http://www.psmag.com/culture/self-respect-tops-list-of-american-social-values-16121/ 61 http://www.cactuslanguage.com/en/culturesmart/culture_germany.php 57
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8.2 Differences in sport habits As Saiphs will deal with sport clubs and sportsmen the project group has also analyzed the differences in this area between America and Germany. The focus here lays on preferred sports and how sports are organized in the two countries. Favorite sports Germany and America 1. 2. 3. 4. 5. 6. 7. 8. 9. 10
America 62 Football Baseball Basketball Hockey Soccer Golf Tennis Motorsports Pro Wrestling Martial Arts
Germany 63 Soccer Gymnastic Tennis Shooting Athletics Handball Horse riding Climbing Fishing Table tennis
Comparing the favorite sports between Germany and America is very important for Saiphs in
order to get a good overview about the clothes needed, when entering the German market. The
table above shows that there is a high difference between the ranking of sports and the discipline itself.
Actually, the two countries only have two similar disciplines under their top ten ranking of
sports, which are soccer and tennis. However, talking about those two disciplines, one can say that soccer is the most important and popular sport in Germany, which means that most of the
boys and men play or have played soccer in a team for a period, while soccer is only ranked on fifth place in America. Nevertheless, this is very good to know for Saiphs, concerning their plan
to export to Germany, because their products are great for soccer players: they can be used all year long to keep muscles warm during winter time and cold during summer time.
Going on, tennis is also a very popular sport in Germany being ranked on third place, while it is
only on sixth place in America. Though, tennis is of no interest for Saiphs as their products are not applicable for this kind of sport, neither the uniforms, as special tennis uniforms are worn, nor the compression gear, as tennis is played indoors during the winter periods. 62 63
http://www.therichest.org/sports/most-popular-sports-in-america/ http://vereinsknowhow.meinverein.de/beliebteste-sportarten-in-deutschland.cfm
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Having a look at the rest of sports in America and Germany, the project group analyzed that
football, baseball, basketball and hockey, which are the four favorite kinds of sport in the US represent the target group of Saiphs. Though, the fact that those sports are not amongst the first top 10 disciplines in Germany, does not mean that they are not a target group in Germany.
Further, as said before and proved by the ranking, soccer represents the biggest sport market in Germany. The German soccer union currently counts about 6.8 million 64 active members, which results in a high interest on products of Saiphs.
Going on, Saiphs´ products like uniforms and compression gear are also necessary for sports as
gymnastic, athletics, handball and climbing, because sportsmen playing handball need a uniform
and individual sportsmen in gymnastic, athletics, and climbing can make use of compression gear.
Coming to a conclusion, the project group can say that there are differences between the preferences of sports in the USA and Germany, so Saiphs needs to take into consideration that they have to focus on a different target market and sports.
A second topic Saiphs has to consider when exploring the German sports market is that sports
are organized differently in Germany. In America, as Saiphs knows, sports are primarily part of High School or college life 65. When doing sports, students are part of a team in High School or
college that’s why the best is to contact schools directly instead of going for retailers.
On the other hand in Germany sport teams are completely separated from school life. Here, each village or town has its own sport club which organizes the different sports and teams 66.
Therefore, concerning Saiphs it will be the best to directly get in contact with those sport organizations. They can then decide for which kind of sport the products of Saiphs are
interesting and actually decide everything concerning purchases. In addition to that the sport clubs usually work together with sponsors and most times have their retailers they always work with. This means for Saiphs that by contacting sport clubs they can also get in touch with retailers and by this maybe become in contact with other sport clubs.
64
http://www.dfb.de/index.php?id=11015 http://usa.usembassy.de/sport-jugend.htm 66 http://www.dosb.de/fileadmin/fm-dsb/arbeitsfelder/wiss-ges/Dateien/Sport_in_Deutschland.pdf 65
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9 Implementation trajectory
In the implementation trajectory, the project group explains which tasks were carried out at what time, in order to make the Saiphs project a success.
Refer to external appendix B for the Gantt chart overview with the time scale from the beginning
of the minor until the next steps, which should be carried out after the project group has finished the minor. Basically, there are seven major steps, which designed the implementation of the minor.
First of all, once the project group had been formed, they applied for the Saiphs assignment and
wrote a substantial plan of action to determine the work process. The next step was the market
research, which made up most of the work spent for this project. This consisted of a complete analysis, including a company analysis, the micro macro analysis, specific research like a survey and field trials, logistics analysis, cultural analysis, and in the end the creation of a strategic
marketing plan and a strategic communication plan and their financial consequences. For the third and fourth step the project group designed various marketing tools for the German market
and was busy with its maintenance. After these preparatory tasks, the project group started the
implementation of the plan in December, what means that they contacted possible clients, negotiated contracts and agreed on various agreements mentioned already before in the report. The sixth step will be the handover of all results the project group came up with, to the owners of Saiphs, so that then Saiphs. Then, Saiphs can continue its actions on the German market in step seven.
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10 Financial consequences of the marketing plan
As the project group has developed several marketing tools, the following marketing costs have to be taken into consideration.
Sponsorship of the first team of Sportfreunde Lotte Production of the banner (4m)
600€ per year
Print for the banner (4m)
220€
Announcement on the website (388 x 166 px.)
400€ per year
Announcements during halftime at home games
Announcements on the Facebook page of SF Lotte
100€ half a year 100€ per year
The costs for the different announcements are not directly costs, as Saiphs will sponsor SF Lotte and provide them with 24 long sleeve shirts, which is a total of about 600€.
In addition to that, as said, the project group advises Saiphs to make use of posters in public
transport in cologne, once the company is more settled and has more financial means. In the
following one can find the costs for this.
Posters in public transport (150 pieces):
30.240€ per year
Website: 3000€ - 5000€
for the development
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11 Conclusion The American company Saiphs Inc. produces athletic sportswear speaking of uniforms and
compression gear. Now, Saiphs wants to conquer the European market, to be more concrete the German market. This market penetration offers the organization many opportunities concerning new international relationships and also larger target groups.
After carrying out this analysis, respectively doing the whole project it is possible to conclude the following statement:
Germany offers good opportunities concerning the potential target group and important environmental factors. The German sports market is booming despite the economic crisis. There is a high chance to be successful when entering the German market due to the company’s strengths and the strategy developed by the project group.
Of course there are several risks, which occur when entering a new market. Even more, when it is about a small company as Saiphs is at the moment. These risks are concerning distribution,
production, competition and the reaching of customers. This could lead to complications because of the size of the German market with all the factors, which play a role in order to enter a new market successfully. But the exhaustive analysis of the internal and external factors confirmed
that this market is favorable for new entrants and offers a lot of options to grow. Even more for Saiphs, as this company is a modern and cool brand, which offers high quality sport products for an affordable price. This is an image, which fulfill on the wishes and needs of the target group.
So, if all parties involved are totally into it and follow the strategy developed by the project
group, it is an absolute go. Definitely, it is always impossible to know in advance if there will be success but in today’s international business it is necessary to just do it, stick to your strengths and work according to the plan. Be open for changes and follow the pursuit of success.
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12 References http://www.saiphs.com/site/index.php?main_page=page&id=28 http://www.saiphs.com/site/index.php?main_page=page&id=28&zenid=m83ocdusv37dhs16p9eo0ckhl1 http://saiphs.com/cms.php?id_cms=11 http://www.dosb.de/fileadmin/fmdsb/arbeitsfelder/wissges/Dateien/Sport_in_Deutschland.pdf http://viewswire.eiu.com/site_info.asp?info_name=social_unrest_table&page=noads http://www.worldwide-tax.com/germany/ger_invest.asp http://www.agbc.de/index.php?home http://www.taxrates.cc/html/germany-tax-rates.html http://www.taxrates.cc/html/us-tax-rates.html http://www.theodora.com/wfbcurrent/germany/germany_government.html http://www.frm-united.com/Political_stability.35.0.html?&L=1 http://www.frm-united.com/Strengths.34.0.html?&L=1 http://de.statista.com/statistik/daten/studie/1319/umfrage/aktuelle-arbeitslosenzahl-in-deutschlandmonatsdurchschnittswerte/v http://www.treugast.com/fileadmin/user_upload/PDF/Newsletter/09_10/20100920_Newsletter_Branch enticker_Gesundheit.pdf http://www.bmbf.de/press/3301.php https://www.cia.gov/library/publications/the-world-factbook/fields/2002.html https://www.cia.gov/library/publications/the-world-factbook/geos/gm.html http://www.culturecrossing.net/basics_business_student_details.php?Id=22&CID=79 http://www.vde.com/de/verband/pressecenter/pressemeldungen/fach-undwirtschaftspresse/seiten/2012-33.aspx http://www.bmwi.de/Dateien/BBA/PDF/ikt-strategie-derbundesregierung,property=pdf,bereich=bmwi2012,sprache=de,rwb=true.pdf http://de.statista.com/statistik/daten/studie/13070/umfrage/entwicklung-der-internetnutzung-indeutschland-seit-2001/ http://www.digitalnext.de/immer-mehr-smartphones-in-gebrauch/ http://de.slideshare.net/dasMobileNetz/smartphone-nutzung-in-deutschland http://de.statista.com/statistik/daten/studie/70189/umfrage/nutzer-von-facebook-in-deutschland-seit2009/ http://www.germanculture.com.ua/library/facts/bl_climate.htm http://www.hg.org/consume.html http://www.nolo.com/legal-encyclopedia/hr-employment-law http://www.derhandel.de/news/unternehmen/pages/Sportartikelhandel-Sportmarkt-6-Milliarden-EuroUmsatz-sind-moeglich-7107.html http://de.statista.com/statistik/daten/studie/72664/umfrage/karstadt---zahl-der-filialen-nach-typ-seit2007/ www.intersport.de/unternehmen/profil www.runnerspoint.com/unternehmen http://www.sportgeschaefte-in-deutschland.de/region/Hamburg.html http://www.adidas.de/M%C3%A4nner-techfit-Preparation-Kurz%C3%A4rmliges-TShirt/UW758,de_DE,pd.html?dwvar_UW758_color=Black&cm_vc=pdpz1 http://store.nike.com/nl/en_gb/?l=shop,pdp,ctr-inline/cid-300/pid-552984 http://www.underarmour.com/shop/us/en/mens/shop-by-fit/compression http://static.lowyat.net/uploads/attach-12/post-287212-1314155331_thumb.jpg Page 358, Czinkota, Michael R.; Ronkainen, Ilkka a:, International Marketing, 8th Edition, Mason (USA), Thomson South-Western, 2007 http://de.finance.yahoo.com/echarts?s=EURUSD%3DX#symbol=;range=19990101,20130107;compare=;i ndicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off ; http://geert-hofstede.com/united-states.html http://www.genderwork.com/images/flags.gif http://changingminds.org/explanations/culture/hall_culture.htm http://www.wiwo.de/erfolg/knigge-stilblueten-und-fettnaepfchen-in-deutschland-seite-3/54930223.html 50/94
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http://www.path2usa.com/dress-code-in-us http://www.elementalenglish.com/2012/02/greetings-in-america/ http://www.wiwo.de/erfolg/knigge-stilblueten-und-fettnaepfchen-in-deutschland/5493022.html http://www.wiwo.de/erfolg/knigge-stilblueten-und-fettnaepfchen-in-deutschland-seite-4/54930224.html http://www.cyborlink.com/besite/international_gift_giving.htm http://www.visitenkarten-inspiration.de/usa-und-gb-3-%C2%BD-x-2/ http://www.visitenkarten-24.org/visitenkarten-knigge.htm http://www.communicaid.com/access/pdf/library/culture/doing-businessin/Doing%20Business%20in%20the%20USA.pdf http://www.german-way.com/friends.html http://geert-hofstede.com/united-states.html http://www.german-way.com/angst.html http://www.communicaid.com/access/pdf/library/culture/doing-businessin/Doing%20Business%20in%20the%20USA.pdf http://www.todaytranslations.com/doing-business-in/germany http://www.task.fm/small-talk-topics http://www.todaytranslations.com/doing-business-in/germany http://www.psmag.com/culture/self-respect-tops-list-of-american-social-values-16121/ http://www.cactuslanguage.com/en/culturesmart/culture_germany.php http://www.therichest.org/sports/most-popular-sports-in-america/ http://vereinsknowhow.meinverein.de/beliebteste-sportarten-indeutschland.cfmhttp://www.dfb.de/index.php?id=11015 http://usa.usembassy.de/sport-jugend.htm http://www.dosb.de/fileadmin/fmdsb/arbeitsfelder/wissges/Dateien/Sport_in_Deutschland.pdf http://www.visitenkarten-inspiration.de/usa-und-gb-3-%C2%BD-x-2/ http://www.visitenkarten-24.org/visitenkarten-knigge.htm http://www.visitenkarten-24.org/visitenkarten-knigge.htm http://www.empower-yourself-with-color-psychology.com/business-cards.html http://www.visitenkarten-24.org/visitenkarten-format.htm http://www.communicaid.com/access/pdf/library/culture/doing-businessin/Doing%20Business%20in%20the%20USA.pdf http://www.german-way.com/friends.html http://ezinearticles.com/?Differences-in-Indian-Ads-in-the-USA-and-American-Ads&id=6920394 http://scratchpad.wikia.com/wiki/Differences_Between_American_and_British_Advertising http://www.lebensmittelklarheit.de/cps/rde/xchg/lebensmittelklarheit/hs.xsl/1487.htm http://ezinearticles.com/?Differences-in-Indian-Ads-in-the-USA-and-American-Ads&id=6920394 http://scratchpad.wikia.com/wiki/Differences_Between_American_and_British_Advertising http://www.lebensmittelklarheit.de/cps/rde/xchg/lebensmittelklarheit/hs.xsl/1487.htm http://www.uspci.co.uk/food%20habits.html http://www.azcentral.com/news/articles/2011/11/23/20111123weird-eating-habits-us-challengefood-industry.html?nclick_check=1 http://www.foodnavigator-usa.com/Market/Age-determines-US-eating-habits-more-than-any-otherfactor-claims-market-researcher http://www.german-way.com/dine.html http://www.stern.de/wirtschaft/arbeit-karriere/karriere/geschaeftsessen-die-etikette-sicher-im-griff501200.html http://www.gallup.com/poll/156770/majority-drink-alcohol-averaging-four-drinks-week.aspx http://www.biztrails.com/travel-tips/businessetiquette/germany/t-drinking-alcohol-on-a-businessdinner www.mfi.uni-miskolc.hu/.../402-Gestures.doc http://geert-hofstede.com/united-states.html http://www.german-way.com/angst.html http://www.communicaid.com/access/pdf/library/culture/doing-businessin/Doing%20Business%20in%20the%20USA.pdf http://www.analytictech.com/mb021/cultural.htm http://blog.communicaid.com/cross-cultural-training/chronemics-concept-of-time/ 51/94
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http://www.todaytranslations.com/doing-business-in/germany http://www.the-language-web.de/zeit.htm http://changingminds.org/explanations/culture/hall_culture.htm http://www.task.fm/small-talk-topics http://www.todaytranslations.com/doing-business-in/germany http://www.business-on.de/koeln-bonn/so-finden-sie-ein-passendes-small-talkgespraechsthema_id11722.html http://uk.askmen.com/money/career_60/93_career.html http://www.business-on.de/koeln-bonn/so-finden-sie-ein-passendes-small-talkgespraechsthema_id11722.html http://www.todaytranslations.com/doing-business-in/germany http://www.psmag.com/culture/self-respect-tops-list-of-american-social-values-16121/ http://www.cactuslanguage.com/en/culturesmart/culture_germany.php http://www.bpb.de/izpb/25168/kirche-in-deutschland http://www.americanthinker.com/2012/02/the_work_ethic_and_us_unemployment.html#ixzz29051aV8 L http://www.uni-protokolle.de/Lexikon/Politisches_System_der_USA.html http://www.tatsachen-ueber-deutschland.de/en/political-system/main-content-04/the-basic-law.html http://www.backview.eu/politik/politik-ausland/1837-rassismus-in-amerika.html http://www.innovationsreport.de/html/berichte/studien/Uebergewichtige_deutschland_stigmatisiert_203388.html http://www.usa.gov/citizens/holidays.shtml#federal http://www.schnelle-online.info/Feiertage/gesetzliche-Feiertage-2013.html http://www.charmingquark.de/?p=1170 http://www.stilgerecht.ch/default.asp?nv=4 http://referenten.sales-motion.de/businessknigge/details.php?category_id=11&article_id=50&article_name=wie-viel-ungezwungenheit-ist-aufbetriebsfeiern-erlaubt Personal interview with an employee Geodis Wilson Hamburg Personal interview with an employee of logistics Edeka AG Hamburg
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13 Appendix 13.1 SWOT SWOT analysis of SAIPHS • • • • • • • •
• • • • • • • • • • • •
Strengths good quality products affordable price tested material liquid (Saiphs has savings) broad color assortment universal product (wide target group) good return policy web shop (possible to order in all areas) Opportunities Large market in Germany (many sport clubs and retailers) Perfect weather conditions (need of compression wear from October to April) high need of uniforms (every year, sport clubs are sponsored with new uniforms) boom of German sports market strong economy in Germany political stability legal security central location in Europe (opportunity to export in other countries as well) importance of quality (Germans care about quality) possibility of health certificate (compression gear is good for the muscles) German American Business clubs (already existing cooperation between the two countries) Tax incentives
• • • • • •
• • • • • • • • • •
Weaknesses unknown brand slow production (in comparison with big brands as Nike…) no marketing campaigns website is not structured userfriendly (especially bad translations) small company distribution network is limited Threats Production in America (less capacity, risk of problems) Different sizes between Germany and the US Long lead times Different currency and risk of exchange rate Importation laws Competitors (many sport wear companies with good imagine) European economical crisis Cultural differences Mature market High tax rates
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13.2 Survey http://www.q-set.de/q-set.php?sCode=KHCBZWVFGGKE 1. Male/Female 2. Age
Possible answers: under 20, 21-35, 36-50, 50+
3. How often (per year) do you buy sportswear?
Possible answers: less than 1, 1-3, 4-6, 6 or more
4. How much money do you spend on sportswear (per year)?
Possible answers: less than 30€, 30€-60€ 60€-100€, 100€ +
5. What are you focussing on when you buy sportswear? Selection
Price
Brand
Colours
6. Where do you usually buy sportswear? Internet
Retailler etc.
7. Did you already buy compression wear? Possible answer: yes/no
8. What do you think in general of compression wear?
Possible answers: useful, not useful, too expensive etc.)
9. How much money would you spend on compression wear?
Possible answers: 20€-30€, 30€-40€, 40€-50€, 50€ +
10. Do you do sport? If so, which one Football Hockey etc.
11. Do you think compression wear is useful in your sport? Possible answer: yes/no
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13.3 Results of Survey Male/female
Male
049% 051%
Age 012%
015%
Under 20
015%
Between 21-35 Between 36-50 50 or older
058%
Money spent on sportswear per year 013% 036% 024%
023%
Less than 30 Euro Between 30 and 60 Euro Between 61 und 100 Euro More than 100 Euro
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Focus while buying sportswear 43 Selecti on Brand
164
286
Price 246
116
Place of buying sportswear 004%
022% Internet 074%
First buy of compression gear 014% Yes 042% No 044%
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Opinion of compression gear 003%
010%
very useful
020%
useful 024%
not really necessary totally unnecessary
043%
Money spent on compression gear 003%
010% 20-30 Euro 029%
31-40 Euro
058%
Active Sports
17 Soccer 118
Hockey
177
Handball 21
143
54
15
17
Basketball Leichtathle tik Tennis
13
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Is compression gear useful?
042%
Yes 059%
No
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13.4 List of contacts Club/Firm SF Lotte Svgh Hasbergen L+T
Phone number 05404 / 4855 0172 5665425 0541 33 11 30
Intersport Gleixner Sport Contact Sport Hereld Sport Ceisig Active Sportshop SV Hellern Victoria GMHütte ISV Arminia Ibbenbüren Amisia Rheine SV Mesum SC Falke Saerbeck VFL Ladbergen VFL Bad Iburg SV Bad Laer SV Adler Dellbrück 1922 e.V. Sport Club Köln-Brück 07 e.V. FC Buchforst 1971 e.V. Sportvereinigung Deutz 05 e.V.
0541 962360 0541 9337484 05451 - 17978 05401 6290 0541-2051955 0541-4406211 05401 2862 05451 73066 05451/444-01 05971/12910 0 59 75 85 96 02574 / 8410 05485-3290 05403-5107 05424-225954
Sportarena
Mobile number
Contact person Florian Siebelmann Molly
0541 120990-0
0221/844949 0221/6201617 0221/6906423
Adress Jahnstr. 8
Herrenteichsstrasse 15 Neumarkt 3
Marc Sandmann
0151/12507024 0179/4978291 0170/9186698
Andreas Will Jens Trentmann Stefan Niehaus Ferdinand Rath Frank Jenniges, Patrick Jakoby, Eugen Müller,
Pagenstecherstr. 38 Mindener Straße 293 Groner Allee 40 a Klöcknerstrasse 1 Lortzingstraße 4 Große Schulstraße 83a Auf dem Rehlberg 1 Am Sportzentrum 36
Hörstkamp 19 Schulstr. 10 Lindenstraße 40 Telgenkamp 24 Sophienstr. 2b Winkelsettener Ring 14 schmidt.tv@t-online.de
postal code 49504 49205 49074
Place Lotte Hasbergen Osnabrück
49090 49086 49477 49124 49074 49078 49124 49477 49477 48431 48432 48369 49549 49186 49196
Osnabrück Osnabrück Ibbenbüren GMHütte Osnabrück Osnabrück GMHütte Ibbenbüren Ibbenbüren Rheine Rheine Saerbeck Ladbergen Bad Iburg Bad Laer Köln Köln Köln
49074
Osnabrück
Köln
Interested? Yes Yes no Cannot decide it in Osnabrück No No Not reached Not reached No Not reached Not reached Not reached Not reached Not reached Not reached Not reached Not reached Not reached Not reached No yes Not reached Not reached
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VfL Rheingold Köln-Poll 1912 e.V. SpVg. Porz 1919 e.V. RSV Rath-Heumar 1920 e.V. TuS Köln Stammheim 1889 e.V. RSV Urbach 1912 e.V. SpVg. Wahn-Grengel e.V. FC Germania Zündorf 1913 e.V. SV Westhoven-Ensen 1931 e.V. SSV Vingst 05 Köln e.V. FC Viktoria Köln 1904 e.V.
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0221/643427 01212/510441343 02236/9699983 02203/87252 02234/3898555 0221/6910492
Werner Dahl,
Köln
Not reached
Thomas Schütze,
Köln
Not reached
0177/8093258
Werner Becker, Kaci Mokrani,
0170/5508053
Karl Heinz Grimm,
0171/5564002
0172/2095298 0178/6945598 0173/9033364 0163/7050444
Paaul Siegfried Christian Maschner, Salvatore Saporito, Armin Klein Detlef Göbel, Paul Sutor,
0221/769206
01577/6674658
Toni Bloch,
02203/17912
0171/6808053
0221/4844450 0221/834590 0221/862885 0221/663585 02203/23457 02203/63945 02203/84410
02203/5698812 0221/8700445 0221/8904479
0160/90248901 0170/5892314 01578/7015100
Jürgen Glowacz, Frank Large,
Peter Dicke Bernd Hölzemann, Hans-Georg Offermann, Herbert Schiefer,
Lutz Kornwebel, Reinhard Groffmann, Manfred Kühnel,
Heinz-Peter Voss,
Marija Hohmann, Helmut Waldhaus,
Köln Köln Köln borussiakalk@gmx.de
ncblochmo@netcologne.de vorstand@spvg-porz.de 02205/905700
Köln Köln Köln Köln Köln Köln Köln Köln Köln Köln Köln Köln Köln Köln Köln Köln Köln Köln
Not reached Not reached yes
Not reached Not reached Yes Not reached no no Not reached Yes no
Yes no
Not reached no Not reached Not reached Not reached Not reached Not reached 60/94
Stenden University DCG VfB 05 Köln rrh. e.V. 1. Fußballclub Union Köln e.V. 1. Kölner Fußball-Club SülzKlettenberg 07 e.V. TG Heimfeld
0221/8303071 0221/438100
USC Paloma
FC Süderelbe
Hamburg Bucs
0176/96626372 0163/8400584 0176/61074338
Bruno Förstel, Abdellah Lahmine Arthur Rätsch,
Mike Sohlmann
Mr. Meyer-Griem
Tus Fleestedt HTB
Sportsworld SV Meppen Injoy Lingen
lahmine_jura@yahoo.de MikeSohlmann@made-byS.de info@fcsuederelbe.de Holger.meyergriem.bucs@web.de info@tusfleestedt.de Htb65@t-online.de
SV Gruen-Weiss Harburg TSV Stellingen
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0591/54333 05931/93010 0591/800380
Herr Majunke Herr Helming Frau Bene
Info@gwharburg.de geschaeftsstelle@tsvstellingen.de
Köln Köln
Not reached yes
Hamburg
yes
Köln
Hamburg Hamburg Hamburg Hamburg
Not reached contract with adidas contract with nike yes
Hamburg
no contract with adidas Not reached
Lingen Meppen Lingen
no no no
Hamburg Hamburg
Not reached
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13.5 Saiphs - Look Book You can view the look book also online via an interesting brochure viewer. Therefore, just visit Saiphs Look Book German Furthermore, you can find the full 20 pages look book in the external appendix A.
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13.6 Facebook
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13.7 Twitter
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13.8 Hootsuite
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13.9 List of Social Media Data Facebook profile
Login name: info@saiphs.de Password: Stenden2012 Twitter
Login name: info@saiphs.de Password: Stenden2012 Email
Login name: info@saiphs.de Password: Stenden2012
Homepage: www.saiphs.pascallammers.de Creator: Pascal Lammers
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13.10 Website
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13.11 AdWords for German Website B2B • • • • • • • • • • • • •
Saiphs Sportbekleidung Hersteller Hersteller von Sportbekleidung Großhändler Sportkleidung Kompressionsbekleidung Sport Trikot Hersteller Fussballshirts günstig Trikothersteller Sportbekleidung günstig Marken Sporthosen Marken Grosshandel Marken Großhändler Großhandel Sportbekleidung
Furthermore, all of the B2C Adwords can be used as well fort he B2B.
B2C • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Kompressionskleidung Kompressionsbekleidung Kompressionskleidung Sport Kompressionskleidung Laufen Sportkleidung Joggen Sportklamotten günstig kaufen Sportkleidung Herren Sportkleidung Herren Sportkleidung online Sportbekleidung online Sportbekleidung online shop Sportbekleidung Billige Sportkleidung Sportbekleidung Damen Sport Kleidung Sporthosen Sporthose kurz Sporthosen Damen Sporthosen Männer Sporthosen Damen günstig Trainingshose Damen Trainingshosen Skibekleidung Sportswear Sportkleidung kaufen Fitnessbekleidung Damen Fitness Bekleidung Kompressionshemd Kompressionshose Kompressionshose Sport Kompressionshosen Damen Kompressionshose Fußball Sportuniform Trikot Trikots Günstige Trikots Billige Trikots Basketball Trikot Volleyballbekleidung Volleyballkleidung Volleyball Bekleidung Volleyball Trikots Volleyballtrikots Volleyballshorts Trikots Volleyball Volleyball Hosen Volleyballshirts Sportbekleidung Fitness Coolmax Coolmax Material Sportklamotten Online Shop Unterziehhemd Antibakterielle Stoffe Antimikrobiel Moderne Sportbekleidung Sportartikel online kaufen
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13.12 Website Banner
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13.13 Sponsorship agreement Saiphs will sponsor 24 Royal blue longsleeve compression shirts to the first team of SF Lotte. In return, they will get: I. II. III. IV.
An advertisement on the website of SF Lotte Announcements on the Facebook page of SF Lotte regarding the sponsorship Announcement during every halftime at home games Product presence in the fan shop of SF Lotte
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13.14 QR Code QR code BLACK with Logo
QR Code BLACK
QR code WHITE with Logo
QR Code WHITE
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13.15 Price list
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13.16 Power Point Layout
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13.17 Business Card
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13.18 Power point of cost analysis
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13.19 Table of Cross Cultural differences
Business and Economics cultural factors at operational level Business dress code
AMERICA
• • •
Male
•
Clothes must be clean and ironed Formal dress code, especially during meetings When starting working in a new company, a clear dress code will be described 67 Formal dress code: dark suit with light shirt and matching necktie, leather shoes
GERMANY
•
In general, clothes should fit to the business a company operates in. However, management should always dress nice and a little too nice is better than too casual. In general nothing may appear dirty or old. 68
• •
Suit, tie, classic style, arm length Shirt, tie and buttons simple and discreet, no short shirts under a jacket • Very nice shoes, always very clean, • Glasses always clean without finger dots • Belt has to match the shoes • Socks always darker than the suit • Accessories: Not too sporty; maximum two rings • Watches always original no copies Female • Mostly, women can wear • No Go: Sex sells casual clothes. They should • Costume or pantsuit are good avoid typical cultural • Dresses in neutral colors and patterns clothes as saris. - for example Dress with blazer • Sometimes they have to • Pants or skirt with a blazer or jacket wear suits, skirts should be • Combined with simple shirts, blouses worn with stockings or twinsets underneath and high heels • Skirts always have to be “one hand” • Accessories have to be below the knee matching to the dress • Shoes: should fit to shirt, not too colorful, closed Greetings • No differences between • Shake hands with enough space in men and women 69 between • Shake the hand • The higher one in hierarchy always decided whether hands are shaken or • Eye contact not • Smile • Private: The last person coming in greets everybody, no matter which order • Business: Hierarchy decides • At meetings: first those who know 67 http://www.path2usa.com/dress-code-in-us each other greet themselves then 68 http://www.wiwo.de/erfolg/knigge-stilblueten-und-fettnaepfchen-in-deutschland-seite-3/5493022-3.html those who are lower in the hierarchy 69 http://www.elementalenglish.com/2012/02/greetings-in-america/ present their accompaniment, then 86/94
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Male
•
Female
• •
Entertainment Business gifts
• • •
Business cards design
•
•
Business cards to give and accept
• •
• • • •
Gifts are not expected but still nice after a job is done; Only gifts up to $25 are allowed by the law Homemade gifts are prestigious71 Different format (88,9 x 50,8mm), smaller and longer than in other countries Most important details (name, address, mobile number, position of the person, email address, website) and logo of the company
•
Not usual to change business cards If business cards are changed, then the person in the higher positions gives his card first Business cards should be unused Eye contacts when giving the business card to the partner Do not write on the business card Study the business card, when reached from the
• •
• •
• •
• • •
•
the one higher in the hierarchy. Now everybody knows each other and greet by shaking hands. Eye contact is very important 70
When meeting a woman, the men greet first however, this is changing New: women have more selfconfidence They stand up and greet the other person
Business gifts are obligatory when being invited privately Bottle of wine and/or flowers are fine May not be too big, as Germans have great fear of appearing corrupt72 Design is very serious without colorful images etc. General information on a business card: Name of the company and the legal form Direction and contact information of the company Contact information of business person Optional: Managing Director, bank account, or even the tax number 73 Hierarchy is important Good time to give a business card: When greeting each other, though when entering a group it is wiser to wait until people leave Eye contact is important Give business card with one hand, in a way that the business partner can directly read it Accept business cards politely: Read it and lay it down in front of you (also helps remembering business partners’ name). When putting it away treat it with respect have a case for your own
70
http://www.wiwo.de/erfolg/knigge-stilblueten-und-fettnaepfchen-in-deutschland/5493022.html http://www.cyborlink.com/besite/international_gift_giving.htm 72 http://www.wiwo.de/erfolg/knigge-stilblueten-und-fettnaepfchen-in-deutschland-seite-4/5493022-4.html 73 http://www.druck-suche.de/was-gehoert-auf-eine-visitenkarte 71
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• • Colours for cards, dress
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• HierarchyVisible
• • •
Way to address each other
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partner Do not put the business card in your purse!!! Business card could also be added in a letter after the meeting 74 Formal colors as black, white, grey, dark blue, dark red The details are more important than the design, but still have to fit to the personality of someone Colors should be in the same color as the company logo, image 76 Hierarchy is shown in the office, learn titles of different persons The head always leads a discussions and decides for the final result Hierarchy supersedes relationship distinctions between work colleagues and friends in social life 78 Use of titles (Mr, Mrs, Dr, Ms) Use of first names due to casual business style and emphasis on equality
cards and put the accepted ones in there as well 75
• • •
•
Hierarchy is very important. For example, concerning greeting and giving business cards, as described earlier.
• •
Formal and reserved Differentiation between “Sie” and “du”. In English both “you”, “Sie” is the polite form Sie is used to address strangers, business associates, and acquaintances, and for most situations outside the family There are trends to change especially amongst younger people, however, it is always wise to be too formal than too familiar In general: When using Mr. or Mrs. “Sie” should be used 79 Advertisements are very informative TV commercials explain benefits for the customer Include practical information and figures Germans rely on friends and personal experiences 81
•
•
• Advertisement codes
74
• • • •
Focus on image and tagline Direct and to the point Business – like target their humor towards younger, bettereducated, professional audiences because they feel it is better suited for
Size: 85 x 55 mm Another possibility are cards that can be folded Colors should match the company but always give a serious impression 77
• • • •
http://www.visitenkarten-inspiration.de/usa-und-gb-3-%C2%BD-x-2/ http://www.visitenkarten-24.org/visitenkarten-knigge.htm 75 http://www.visitenkarten-24.org/visitenkarten-knigge.htm 76 http://www.empower-yourself-with-color-psychology.com/business-cards.html 77 http://www.visitenkarten-24.org/visitenkarten-format.htm 78 http://www.communicaid.com/access/pdf/library/culture/doing-business-in/Doing%20Business%20in%20the%20USA.pdf 79 http://www.german-way.com/friends.html 81 http://www.lebensmittelklarheit.de/cps/rde/xchg/lebensmittelklarheit/hs.xsl/1487.htm
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•
• • • Food habits
• • • • • • • •
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them hard sell that is all about information and pressuring the consumer to buy products are primary element Advertisements in order to make profit (high competitive market!) personalized advertisements in internet 80 age influences food habits regarding the place, time and kind of food mix of variety of food from around the world no deep rooted cuisine lots of junk and fast food no traditional eating hours anymore Leave a small amount of food on your plate when you have finished eating Do not begin eating until the hostess starts or says to begin Use the napkin 82
• • • • • •
German food varies throughout the different regions of the country Every region has its typical food Bread is very important and a basic food eaten for breakfast and lunch or dinner. There are about 300 different kinds which can be bought in special bakery shops. Most families eat one warm meal a day, either for lunch or dinner. Traditionally, lunch is the biggest meal and warm.
Eating out83: • Most times people have to find their own seats • It is not common to drink tab water. Germans almost always drink sparkling water and asking for tab water in a restaurant is very uncommon • You have to pay for all your dishes in general there is not an entire meal but several dishes on the menu and usually you even have to pay for bread before • Paying is done at the table. Normal tipping is about 5-10 percent, which is directly given to the waiter and not left at the table. Business dinners 84: • The host should know the restaurant • Easiest to meet inside. When meeting outside, make sure to open the door
http://ezinearticles.com/?Differences-in-Indian-Ads-in-the-USA-and-American-Ads&id=6920394 http://scratchpad.wikia.com/wiki/Differences_Between_American_and_British_Advertising 82 http://www.uspci.co.uk/food%20habits.html http://www.azcentral.com/news/articles/2011/11/23/20111123weird-eating-habits-us-challenge-food-industry.html?nclick_check=1 http://www.foodnavigator-usa.com/Market/Age-determines-US-eating-habits-more-than-any-other-factor-claims-market-researcher 83 http://www.german-way.com/dine.html 84 http://www.stern.de/wirtschaft/arbeit-karriere/karriere/geschaeftsessen-die-etikette-sicher-im-griff-501200.html
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•
•
• • • • Drinking habits
• • • •
up to 5 alcoholic drinks per week beer is favorite drink vary considering age, gender and race the host has to drink first 85
• • •
• Gestures
• • • • • • • • •
Risk attitude
•
need distance to other people do not like to be touched during a conversation handshaking eyes contact raise their arm and waggle it back and forth (hello, good bye) V shape with their index and middle fingers: show victory or peace a circle with their thumb and index finger; rise up their thumb: OK, yes whistling: encourage, flirt Making a circular motion near the temple or ear is the next gesture: crazy 87 Uncertainty avoidance of
•
for your invite, however inside the host goes first When going to eat with someone unknown, make sure to present yourself. If he/she is higher in hierarchy wait to shake hands depends on him/her The invite should always get the best seat (where he can look and overview the room). Bosses inviting their employees usually wait until everybody is seated. Men may hold the seat for women (though very traditional Everybody should order the same amount of dishes to avoid waiting for others Silverware is used from outside to inside, glasses form right to left A serious impression with come humor is always the best way For business dinners drink wine or beer Not more than two glasses One should follow the German saying “no drinking before 4 p.m.” make sure how business partners feel about drinking, might be safer to not order alcohol. Of course it is not obligatory to drink, even if one is invited. 86
Uncertainty avoidance of 65
85
http://www.gallup.com/poll/156770/majority-drink-alcohol-averaging-four-drinks-week.aspx http://www.biztrails.com/travel-tips/businessetiquette/germany/t-drinking-alcohol-on-a-business-dinner 87 www.mfi.uni-miskolc.hu/.../402-Gestures.doc 86
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Time concept
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•
• • •
46 (Hofstede) there is quiet a high attitude towards risk 88
• •
Punctuality is very important, otherwise you have to announce the delay Waste of time!!! Time is money Deadlines should be adhered 90
• •
• • •
• • • • • • • • •
• AgendaMonochrom Topics to talk
• • • • •
Monochromic culture Agendas are followed TIME IS MONEY! Small talk at the beginning of a meeting 96 Not too much to not lose time o Sports o Weather o Clients journey o Previous visits in the city o Actual events
• • • • • • • • •
Germans “enjoy” worrying, Very likely to see them worrying about everything climate, environment, future, work, money Tend to be pessimistic Risk is seen as threat Titles are very important and show safety 89 Future-oriented culture People think they can shape and change the future by their actions Therefore really hard-working 91 Monochromic culture (Edward T. Hall) 92 Prefer careful planning Rigid commitment to plans Efficient working Do one thing at a time Focus on the task To complete a task is the most important Punctuality is essential. Even if one is only a couple of minutes late, one has to inform business partners Being late without informing can be seen as high offence. 93 Loosing time is very bad 94 Agendas are highly valued Want to meet their goals and stick to a precise plan 95 Good topics to talk about are Football (soccer) Recent holidays Work and Beer 97 In general an easy topic should be chosen to find similarities between you and your business partner. 98
88
http://geert-hofstede.com/united-states.html http://www.german-way.com/angst.html 90 http://www.communicaid.com/access/pdf/library/culture/doing-business-in/Doing%20Business%20in%20the%20USA.pdf 91 http://www.analytictech.com/mb021/cultural.htm 92 http://blog.communicaid.com/cross-cultural-training/chronemics-concept-of-time/ 93 http://www.todaytranslations.com/doing-business-in/germany 94 http://www.the-language-web.de/zeit.htm 95 http://changingminds.org/explanations/culture/hall_culture.htm 96 http://www.task.fm/small-talk-topics 97 http://www.todaytranslations.com/doing-business-in/germany 98 http://www.business-on.de/koeln-bonn/so-finden-sie-ein-passendes-small-talk-gespraechsthema_id11722.html 89
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Topics to avoid
Things definitely to avoid Social values
• • • • • • • • • • • • • •
Politics Religion Money Illness and death 99 Sex Relationships
Self respect Security Warm relationship with others A sense of accomplishment Self-fullfillment Being well respected Sense of belonging Fun-enjoymentexcitment 102
Religion
• • •
Christians 78,4% Jewish 1,7% Muslim 0,6%
Work Ethics
•
Punctuality - arriving promptly and otherwise being there when needed. Reliability - performing one's job, rain or shine, even when tempted to be elsewhere. Diligence - tenaciously sticking to it and avoiding the lures of wasteful socializing or daydreaming. Agreeableness - getting along with fellow employees or customers regardless of personal
•
•
•
99
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To get a smooth start avoid topics like diseases or how bad everything is. • Give your partner a good impression of yourself. 100 • Holocaust and World War 2 should really be avoided, especially when being foreign in Germany 101 Values Germans are known for: 103 • Efficiency • Organization and system for everything • Tidiness • Good planning • Ecologically • Duty if one says something one does it! • Friendship is a strong term most people are only acquaintances; circle of friends is rather small • 74% say they belong to Christianity Protestants (25,1 Million= 30,5 %) Catholics (25,7 Million = 31,2%) Other (12,3%) • Only 20% are really religious active • Muslims 3,9% • Religion is individualistic 54% really believe that there is something like a god • Also people do not necessarily see the need to go to church in order to be religious104 http://onken.com/classroom/interculturalma nagement/germany/germany_businessethics. html • High loyalty of managers and employees
http://uk.askmen.com/money/career_60/93_career.html http://www.business-on.de/koeln-bonn/so-finden-sie-ein-passendes-small-talk-gespraechsthema_id11722.html 101 http://www.todaytranslations.com/doing-business-in/germany 102 http://www.psmag.com/culture/self-respect-tops-list-of-american-social-values-16121/ 103 http://www.cactuslanguage.com/en/culturesmart/culture_germany.php 104 http://www.bpb.de/izpb/25168/kirche-in-deutschland 100
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feelings. Abiding by the rules whether about personal appearances or performing tasks properly, all rules are to be obeyed. • Ambition - a willingness to improve performance, acquires new skills, and try to be a better employee as a matter of principle even if not immediately rewarded. those ethics get more and more informal and employees develop their own rules 105 Presidental democracy 106 •
Political systems
Stigmatised population Priviledged population Holidays; national , religious
• • • • • • •
South Americans Afro – Americans Native Americans 108 Whites
New Year´s Day (1st of January) Martin Luther King Day (3rd Monday in January) Washington’s Birthday (3rd Monday of February) Memorial Day (last Monday of May) Independence Day (4th of July) Labor Day (1st of September) Columbus Day (2nd
• • • • • • • • •
Democracy on base of Basic Law (Grundgesetz) Basic law states that Germany is a constitutional state and a welfare stare The basic laws have primacy and all authorities are always judicially controlled Especially important is the basic law: “Human dignity shall be inviolable. To respect and protect it shall be the duty of all state authority” and that all human beings are the same and of same value. Three important pillars are: executive, legislative and judiciary. 107 Overweight people are stigmatized 23% of the Germans do not find it acceptable and lazy. 109 Rich people Festival days are not the same in all states of Germany If such a day is on the weekend it is not moved to the week (Monday or Friday like in other countries) Days that are free in entire Germany New Year´s Day (1st of January) Twelfth Day (06.01) Good Friday (Friday before Easter) Easter (Sunday and Monday9 Labour day (1st of May) White Sunday and Monday
105
http://www.americanthinker.com/2012/02/the_work_ethic_and_us_unemployment.html#ixzz29051aV8L http://www.uni-protokolle.de/Lexikon/Politisches_System_der_USA.html 107 http://www.tatsachen-ueber-deutschland.de/en/political-system/main-content-04/the-basic-law.html 108 http://www.backview.eu/politik/politik-ausland/1837-rassismus-in-amerika.html 109 http://www.innovations-report.de/html/berichte/studien/Uebergewichtige_deutschland_stigmatisiert_203388.html 106
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• • • Honorifics
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Monday in October) Veterans Day (11th of November) Thanksgiving Day (4th Thursday in November) Christmas Day (25th of December) 110
• •
•
•
•
Tag der deutschen Einheit (Day, when East and West Germany were reuned again, 03.10) Christmas (24th and 25th of December) 111 In general it has to be said that Germans in everyday life business act very individualistic and are not very helpful or honorific 112. However, there exists the Knigge, which is a book which only talks about how to be polite and which is actually used by business people 113 Examples are 114: letting somebody finish talking To cough or yawn at somebody To not pick in ears or nose To bring a small present when being invited To be able to control oneself at business parties even when drinking alcohol
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http://www.usa.gov/citizens/holidays.shtml#federal http://www.schnelle-online.info/Feiertage/gesetzliche-Feiertage-2013.html 112 http://www.charmingquark.de/?p=1170 113 http://www.stilgerecht.ch/default.asp?nv=4 114 http://referenten.sales-motion.de/business-knigge/details.php?category_id=11&article_id=50&article_name=wie-vielungezwungenheit-ist-auf-betriebsfeiern-erlaubt 111
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