The Global Marketplace: GermanyMKT250 Phase 5 IP

Food Market Inc.: Expansion to GermanyJoint Venturing – Joint Ownership1. Partnership with German Company

offers insight and guidance to Food Market Inc. (Armstrong & Kotler, 2011)

2. Find local suppliers and distributers meeting Food Market mission and quality standards (Armstrong & Kotler, 2011)

3. Aid adaptation of Food Market Inc. to German Market with products and services (Armstrong & Kotler, 2011)

Germany: InfrastructureDistribution1. Airports – 549 total; 330 paved

runways 219 unpaved runways (Central Intelligence Agency, 2011)

2. Railway system – Ranks 6th largest in world (CIA, 2011)

3. Roadways – Ranks 11th in the world (CIA, 2011)

4. Waterways – Rhine River, Danube Canal links North and Black Seas (CIA, 2011)

Germany: InfrastructurePromotion1. Television advertisement very

limited and costly (Armstrong & Kotler, 2011)

2. Mobile phone advertising more accepted and less costly (Armstrong & Kotler, 2011)

Germany: InfrastructurePricing1. Competitive (Armstrong &

Kotler, 2011)2. Value based (Armstrong &

Kotler, 2011)3. Going-Rate (Armstrong & Kotler,

2011)

Germany: Capacity of MarketCan Germany utilize Food

Market?1. Highly educated general

population (U.S. State Department, 2010)

2. Majority middle-class income demographic (CIA, 2011)

3. Median age mid-40’s good target segment for promotion of healthy lifestyles (CIA, 2011)

Special Considerations or Impact and Demographic EnvironmentCulture1. Majority of population is “ethnic German”

however large population of roughly 7 million non-German residents also present (U.S. State Department, 2010)

2. One of the best education systems in the world (U.S. State Department, 2010)

3. One of the most technologically advanced nations in the world (U.S. State Department, 2010)

4. One of the most economically productive nations in the world (U.S. State Department 2010)

Special Considerations or Impact and Demographic EnvironmentReligion1. 34% Protestant (U.S. State

Department, 2010)2. 34% Catholic (U.S. State

Department, 2010)3. 28.3% Unaffiliated or other (U.S.

State Department, 2010)4. 3.7% Muslim (U.S. State

Department, 2010)

Special Considerations or Impact and Demographic EnvironmentPolitics1. Political system is a product of post-WWII

influence of the United States, Great Britain, France and the U.S.S.R. (U.S. State Department, 2010)

2. Recently West and East Germany reunified (U.S. State Department, 2010)

3. Political parties limited to seating based on ability to hold a minimum 5% of vote (U.S. State Department, 2010)

4. Political parties known to partner and form government coalitions (U.S. State Department, 2010)

Germany: Potential Demand for Food Market Inc. 1. Favorable diversity in population (U.S. State

Department, 2010)2. Favorable economic situation within

Germany (U.S. State Department, 2010)3. Favorable political climate between U.S. and

Germany (U.S. State Department, 2010)4. Favorable position of Germany with rest of

European Union (U.S. State Department, 2010)

5. Potential demand for Food Market will be high with room for future growth (U.S. State Department, 2010)

References

Armstrong, G. & Kotler, P. (2011). Marketing: An Introduction tenth edition. Upper

Saddle River, Pearson Prentice-Hall. Retrieved from Retrieved from

http://campus.ctuonline.edu

Central Intelligence Agency (2011). The World Factbook: Germany. Retrieved from

https://www.cia.gov/library/publications/the-world-factbook/geos/gm.html#top

Priest, M. (2008) German Business Etiquette, Manners & Cross-Cultural

Communication and Geert Hofested. Retrieved from

http://www.cyborlink.com/besite/germany.htm

U.S. State Department (2010). U.S. Department of State: Diplomacy in Action:

Background note: Germany. Retrieved from

http://www.state.gov/r/pa/ei/bgn/3997.htm