Research and Market Entry Report for Austria Krystian Raymond



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The target consumer is a middle-aged homeowner with a do-it-yourself mindset that has relatively high-levels of disposable income. Middle- or upper middle-class homeowners may choose to invest disposable into home improvement and renovation projects instead of spending on consumer products. This can hold true even during economic downturn, where home improvement is seen as a form of investment rather than an expense. RONA’s target consumer would be a quality-minded individual who may be willing to spend more in exchange for a higher-quality offering. As a smaller, more specialized outlet, RONA’s Austrian stores will focus more on design and finishing products that appeal to the wealthier consumer base. RONA must develop a product mix that serves the renovation needs of the average Austrian consumer while attracting the consumers who seek higher-end materials and products for their home improvement needs.

Within Austria, there are approximately 3.4 million households. As the Vienna region holds approximately 20% of the country’s population, an estimated 850,000 households exist. 43.1% of the Austrian population is between 25 and 54 years old (see appendix 1.4), which is within the age range of potential consumers. Among this range, RONA will target the top earning 65% of the population range. This gives RONA an estimated customer base of 190,000 consumers within the Vienna region, or just over 11% of the region’s population. This provides an adequate customer base on which to build operations and provides the opportunity for further growth within the region in the future.

Promotion and Advertising


Within Austria, most conventional advertising channels are used including television, radio and print advertisements as well as billboards, signage and other forms of visual promotion. The most significant advertising channels (measured in share of advertising revenue) are: print media (45%), television (18%), and radio (5%).[Adv12] These constitute the most important channels when connecting with consumers, though advertising online is becoming increasingly important in the modern age. Around 80% of the Austrian population was reported to be using the internet in 2012. Furthermore online shopping was found to be used by around 45% of internet users. [Adv12]It is becoming increasingly important to have a good online presence as it can have a significant positive impact on sales and the overall success of the company. RONA should create a German language web page for the Austrian market to connect wth consumers and establish its market presence.

Within the Austrian television broadcasting industry, the Austrian Broadcasting Corporation (ORF) remains the leader in viewership among the population. “ORF has four national TV stations and it was 2003 before terrestrial television was opened up to private broadcasters.”[Adv12] The ORF holds a viewership share in the broadcasting industry of over 36% for its top two stations alone. “The newspaper with the highest circulation is Neue Kronen Zeitung with a share of 44.9%. It is followed by Österreich, Kleine Zeitung, Heute and Kurier.”[Adv12] Neue Kronen Zeitung is a daily newspaper covering both national and international news stories and events.[Kro14]

RONA’s promotion timeline will begin with signage and billboards around the site locations during the acquisition and rebranding phase of the expansion process. A German language website will also be created. This will serve to build interest and introduce the brand to the general public. One month before opening the facilities, RONA will begin print and billboard advertisements to promote the grand openings. The print advertisements will be featured in Austria’s national newspaper, Neue Kronen Zeitung, while the billboards will be selected based on proximity to locations and consumer visibility. Once operational, television promotion will be used to supplement the print advertisements and signage. RONA should negotiate a deal with the Austrian Broadcasting Corporation to display RONA’s advertising campaigns on the Corporation’s two most popular channels, ORF 1 and ORF 2. This general promotion strategy will ensure that RONA can adequately represent itself within the market and will serve to support the company as attempts to gain traction within the industry.



All advertising channels must be stable to ensure that RONA can effectively connect to consumers with the market. Good relationships with media providers are essential to ensure that RONA can consistently reach consumers and promote the business. Tentative advertising budgets for the year are set at $1 million, subject to review and adjustment where necessary. RONA should be prepared for increased promotional spending as it attempts to build market share and consumer confidence within the Austrian market.




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