International Marketing MKT 466- Country Paper Switzerland
Including Sunglass Campaign
Presented by: Eileen D. Klingsiek
Fall Semester 2009/2010
International Marketing MKT466 Country Paper- Switzerland
1.0 Introduction
2.0 Background
2.1
History
2.2
Geography
2.2.1 The three main regions
2.3
Climate
2.4
Demographics
2.5
Religion
2.6
Culture
2.7
Infrastructure and Environment
2.8
Education
2.9
Politics
2.10 Foreign Relations and International Institutions
3.0
Hofstede’s Cultural Model
3.1
Individualism/ Collectivism
3.2
Uncertainty Avoidance
3.3
Power Distance
3.4
Masculinity/ Femininity
4.0 Sunglass Campaign
4.1
4.2
Lifestyle & Leisure
4.3
Climate
4.4
Infrastructure
4.5
Product Price Range
4.6
Product Positioning
4.7
`
Potential Market/ Target Market
Media Strategy
5.0 Conclusion
6.0 Personal Reflection
7.0 Work
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International Marketing MKT466 Country Paper- Switzerland
Introduction
Every Marketing campaign starts with devising the “4 – Ps,” price, product, promotion and distribution. Being successful in business in the international sector understands and adapts to one individual idea: culture. Culture is the most influential uncontrollable environmental force in international marketing (Cateora and Graham, 2007). Due to the fact that the world is ethnically diverse and each ethnicity holds their own traditions, a domestic company, like in our case an US sunglass seller, cannot expect to enter another country without considering the other’s beliefs. These beliefs can be seen from the role of government in day-to-day life and the type of economy is used, to its citizen’s lifestyle, income and specially the consumer behavior. To be successful, the company entering the new market needs to establish a frame of reference and take time to learn about the new environment.
Now, in our case, we have to keep all the cultural differences in mind to create and establish a successful US sunglass campaign in Switzerland. Our company has to consider the following cultural aspects to fully understand the market: history, geography, demography, climate, infrastructure, government, economy, industrial production, foreign relations, religions, native business practices, politics and lifestyle.
2.1
History
Switzerland has a very long and interesting history. This section of the case study will provide a brief overview of the most important dates pertaining to this project:
In 1291 the three states Uri, Schwyz and Unterwalden - the so called "Ur-Kantone," unite against the surrounding aggressors. A citizen of each state swears on August, 1st 1291 on a small
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mountain named we will be a one and only nation of brothers. This leads to the term confederation. The Beginning of the "Reformation" was in 1522.
In 1648 the Declaration of Independence - Switzerland becomes an independent Nation
In 1812 the Swiss Federation declares its neutrality
In 1815 Valais, Neuchâtel and Genéve join the Swiss Federation - Switzerland gets its final boundaries. In 1884 The Swiss Federation changes from a Union of States to a Confederation. Its first
Federal Constitution is set up.
On 01.02.1959 Vaud (VD) was the first canton to give women the vote, followed by Neuchâtel
(NE) (27-09-1959) and Genève (GE) (6-03-1960).
In the year 1971 the Swiss people vote for the women's suffrage.
On 02.10.1984 the combined federal assembly elected Elisabeth Kopp as the first woman as executive authority.
On 30.04.1989 Appenzell Ausserrhoden (AR) was the last canton to give women the vote;
Appenzell Innerrhoden (AI) had to be forced by the Swiss federal court to give women the vote
(27-11-1990).
In 1992 Swiss people vote against becoming a member of the EEA (european economic area).
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On 10.05.1993 the combined federal assembly elected Ruth Dreifuss as the second woman executive authority.
In 1999 Ruth Dreifuss became the first female president of the Swiss Federal Council.
On 18.04.1999 Swiss people accept a new Federal Constitution ("Bundesverfassung") on a vote.
On 21.05.2000 the Swiss people accept the bilateral contracts with the European Union
On 03.03.2002 -Finally, Switzerland is to join the United Nations. Today, both the people and cantons have accepted the popular initiative on Swiss membership of the United Nations.
On 10.09.2002 Switzerland was declared a full member of the United Nations as recommended by UN's Security Council.
On 08.02.2009 the Swiss population approves the continuation and extension of the bilateral agreements about the free movement of persons between Switzerland and the European Union,
2.2
Geography
Switzerland officially called the Switzerland Confederation is a federal republic with its capital city, Bern. It consists of 26 states named cantons and is situated in Central Europe (46°50′00′′N
8°20′00′′E).
The largest city is Zuerich with 1729km² and 1.32 inhabitants per square kilometer followed by
Geneva with 11,710km2 (30,330 /sq mi). Both of the cities will be of vital importance for the sunglass campaign, because they are rank among the richest cities in the world. The whole
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population of Switzerland is about 7.6 million, resulting in an average population density of around 240 people per square kilometer.
Switzerland is bordered by Germany to the north with 345,7km border length, with 571,5km by
France to the west, by Italy to the south side with 732,2km and finally to Austria with 165,1km and Lichtenstein with only 41,1km to the east side. The Swiss Confederation is a landlocked country with a total area of 41285km² (15940 sq mi). It is one of the smallest countries in
Europe, with a maximum north-south length of
220 kilometers (137 mi) and an east-west length of about 350 kilometers (217 mi). It is geographically divided between the Jura, the north part, the Swiss Plateau or “Middle land” and the Alps which are the south part of Switzerland. They correspond each to clearly different geological realities. Switzerland is also divided by language. There are four official languages;
German 63.7% of population, French 20.4% of population, Italian 6.5% of population and
Romansh 0.5% of population. (www.wikipedia.com)
2.2.1 The three main regions
The Alps
Switzerland is well known for the Alps. The Alps
comprising about 60% of the country’s total area and
The three main regions:
Jura
are a high mountain range running across the central6|Page
Plateau
Alps
International Marketing MKT466 Country Paper- Switzerland
south of Switzerland. They have an average altitude of 1,700 meters (5,577 ft) and cover nearly two thirds of the total surface area. Within the Alps there are 48 mountains that are 4,000 meters
(13,123 ft) or higher. The highest peak of the Alps is the Dufourspitze at 4,634m (15,200ft). The lowest point in Switzerland is on Lake Maggiore 177 meters (581 ft). Reams of valleys with many waterfalls and glaciers can be found over there. From these the headwaters of several major European rivers such as Rhine, Rhone or Inn flow finally into the largest Swiss lakes such as Lake Geneva and Lake Zürich. One of the most recognizable symbols of Switzerland, the
Matterhorn is also located in the Alps. The Matterhorn with 4,478 meters (14,692 ft) is the seventh highest peak in the Swiss Alps and is the most photographed mountain in Switzerland.
The cantons in the Alps tend to be less populous, agrarian or tourist based economies, and religiously Catholic.
In conclusion, the Alps are a popular tourist destination and are one of the most recognizable symbols of Switzerland.
The Swiss Plateau
The Swiss Plateau constitutes about 30% of the country and about two thirds of the population lives in this area. The population density on the plateau averages about 450 people per km2 (1.16 per square mi). The “Middle Land” runs from Lake Geneva on the French Border across central
Switzerland to Lake Constance on the German and Austrian Borders. The plateau has an average altitude of 580 meters (1,903 ft). It has greater hilly landscapes with forests, partly open pastures with grazing herds and a big amount of fruit and vegetable fields. The largest lake, the Lake
Geneva, is also located in the “Middle Land” as well as the biggest Swiss cities. The cantons
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along the Swiss plateau tend to be the most populous industrial and religiously Protestant. The
Swiss Plateau is also home to the majority of industry, manufacturing and farming in
Switzerland.
The Jura
The Jura Mountains are a small mountain range located in the north of Switzerland and constitutes about 10% of the country. The mountain range is located in France, Switzerland, and
Germany. The Swiss Jura has been industrialized since the 18th century and was a major center of the watch-making industry. Therefore, there are relatively large cities at very high altitudes.
The Jura range offers a variety of tourist activities including hiking, cycling, skiing and cross country skiing. There are many signposted trails including the Jura ridge way, a 310 km hiking route. (http://en.wikipedia.org/wiki/Switzerland)
2.3
Climate
The temperature is moderate with no extremes of hot and cold, so Switzerland can be visited at anytime of year. Summer is warm to hot lasting from about June to September, and although good for outdoor activities it is also the most crowded time for a holiday. In the plain, temperatures can rise to 30ºC (86ºF) in the summer, and even in the mountains the sun is hot.
The warmest parts of the country are Montreux, where palm trees line the lake-side, Ticino and
Valais. In Ticino, the Italian-speaking canton South of the Alps, there are over 298 sunny days a year and daily mean temperature in July are over 26ºC (79ºF).
Ski resorts open in late November and remain so until the snow begins to melt in April. In the winter, temperatures rarely drop below -5ºC (-41ºF) in the entire country, save the mountaintops.
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The mountainous character of Switzerland is responsible for spectacular differences in the weather among different regions. It is very common to move from a cold, cloudy and rainy landscape to a beautiful clear blue sky with hot sun in just a few minutes.
(www.woitalia.it/reports/climate/Switzerland.htm)
2.4
Demographics
Switzerland sits at the crossroads of several major European cultures; this is the reason why the
Swiss Confederation is so heavily influenced in the country's languages and cultural practices. It has four national languages: German, French, Italian , these are the three Confederation official languages, and the Romansh language which is official only in the Grisons. The non-official language with the largest group of native speakers is Serbo-Croatian with 103,000 speakers.
The German spoken in Switzerland is a group of Alemannic dialects, known as Swiss German which has a total population share of 63.7% include foreign residents. The written communication typically uses Swiss Standard German and therefore the majority of radio and
TV broadcast is in Swiss German as well. The French speaking part is located in the south west part of Switzerland, this part is also known as “Swiss romande”- 20.4% of the Swiss
Confederation part are French speakers. The south east part of the country is the Italian and
Romansh speaking part with 6.5% Italian language and the smallest allotment with 0.5%
Romansh. Moreover all of the four official languages have got different dialects. Learning one of the other national languages at school is obligatory for the total Swiss population, accordingly most Swiss are at least bilingual.
A total of 22% of the population are resident foreigners or temporary foreigners. The biggest percentage is from the European Union with 60%. At this juncture, the Italian are the largest
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group of foreigners with 17.3% followed by the Germans with 13.2% of the total population. The rest are immigrants from Serbia and Montenegro with 11.5%, Portugal with 11.3% or Sri Lanka with the biggest amount of Asian origin. The high amount of foreign citizen and the unproblematic integration of immigrants should make the Switzerland’s openness clear and obvious. Switzerland’s life expectancy is one among the highest in the world with 79 years for men and 84 years for women- a great result of the compulsory universal health insurance coverage and the modern medical service.
Around 60% of the total population lives in the urban areas of the country which has an overall dense network of cities, where large, medium and small cities are complementary. The biggest cities, like Zürich, Geneva and Bern, tend to rises continuously and are recognized for their great quality of life.
In conclusion, Switzerland consistently ranks high on quality of life indices, insurance coverage per individual and health care rates. For these and many other reasons, such as the four languages, it serves as an excellent test market for businesses hoping to introduce new products into Europe. (www.wikipedia.com)
2.4
Religion
First of all, Switzerland has no country-wide state religion. Christianity is the predominant religion of Switzerland, divided between the Roman Catholic Church, 46% of the population, and the Swiss Reformed Church, with 40% henchmen in total. Most of the 26 cantons have got official churches, in all cases. The rest religion is divided by Islam (4.26%) and Eastern
Orthodoxy (1.8%) as sizeable minority religions.[2]. Other minority communities include various
Protestant denominations (totaling 1.94%), the New Apostolic Church (0.45%), Hinduism
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(0.38%), Buddhism (0.29%), Judaism (0.25%), Jehovah's Witnesses (0.23%) and the Old
Catholic Church (0.18%) and at least various other communities. Switzerland has got an irreligious rate of 11.11% of the total population.
The Swiss Confederation is historically about evenly balanced between Catholic and Protestant regions. The larger cities like Bern and Zürich are traditionally Protestant, while Central
Switzerland and the Ticino are traditionally Catholic. A current political initiative aims to ban the building of minarets on future mosques and the building of mosques in general. Switzerland has currently got 2 mosques, one in Geneva and the other one in Zürich..
The Swiss constitution of 1848, under the recent impression of the clashes of Catholic vs.
Protestant cantons that culminated in the Sonderbundskrieg, consciously defines a consociation state, allowing the peaceful co-existence of Catholics and Protestants. (www.historyswitzerland.geschichte-schweiz.ch)
2.6
Culture
The Swiss Confederation is known for its long standing humanitarian tradition as Switzerland is the birth place of the Red Cross Movement and hosts the United Nations Human Rights Council
As a result of being surrounded by 5 different countries, Switzerland has got a variety of culture.
French-speaking regions have slightly more on French culture and tend to be more pro EU.
Therefore, the Swiss German speaking part tends more to have a German cultural background and, of course Italian-speaking areas can have more of an Italian culture. In general, a region is in some ways strongly culturally connected to the neighboring country that shares its language.
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Architecture is a strong tradition in Switzerland. The Romanesque style of the 12th century, which is rich on expressions, can not only be found in the cathedrals of Basel, Sion, Chur
Geneva and Lausanne but also on many castles and fortresses. Not to be scoffed at the cathedrals of Schaffhausen, Zug and Zuerich where the Gothic style can be found and the churches of
Einsiedeln and St. Gallen which are of Baroque style. During the
Renaissance, a large number of architectural masters gave their talents to Italy. Finally it must be started that a distinctive architecture of high quality can be found around Switzerland and that is often considered as particularly innovative modern architecture.
Cathedral of Basel
From a Literature point of view, Switzerland produced a lot of well known and important writers. Jean-Jacques Rousseau, born in Geneva for example, was a major philosopher, writer, and composer of the eighteenth-century
Enlightenment, whose political philosophy influenced the French Revolution and the development of modern political and educational thought, to name only one of many important writers from Switzerland. Nowadays, standard German is commonly used for writing, but there is still a living dialect literature in many areas.
Media is the next really important topic to name in this case. Switzerland’s newspapers have not only got a strong regional character, they have also an international such as the Neue Zürcher
Zeitung of Zürich and Le Temps of Geneva are renowned for their thorough coverage of international issues. As a matter of course television is of great importance in modern cultural life in Switzerland. Three different networks are offered by the national public broadcaster, SRG
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SSR idée suisse. one each for the German, French and Italian-speaking part of Switzerland. Due to the multilingual culture fact, nearly all movie theatres play movies in their original l anguage with subtitles, and films on television are often broadcast in original and synchronized versions.
Leisure is of of prime importance in Switzerland. The growth of ski and mountaineering resorts in the Swiss mountains have caused the Swiss to become very sports conscious. Switzerland has one of the most popular skiing areas in the world, most located in the Alps. Besides skiing and mountaineering, Swiss-style wrestling is still popular in countrified areas.
Food ingredients and the way to prepare it vary greatly all over the country. Generally speaking, basic food items include a huge selection of bread (white, whole wheat etc.), dairy products such as milk, yogurt, butter and a great variety of the world famous Swiss cheese. Also important are vegetables including beans, carrots, cauliflower, potatoes, spinach etc. Sausages and meat mainly veal, beef, pork, chicken or turkey - are served in many different ways: grilled, cooked, sliced or cut. Side dishes include French fries, rice, potatoes and different types of pasta. Fruits are available from all over the world; locally grown fruits include apples, pears, grapes and different types of berries, such as black berries, blueberries, raspberries, red currants and strawberries. Finally, there are a lot of sweets; including the second type of food that Switzerland is world famous for: the Swiss chocolate. (www.wikipedia.de)
2.7
Infrastructure and Environment
The private- public road system of the Swiss Confederation is funded by road tolls and vehicle taxes. The autobahn network, or autoroute of the country has got a length of 1638km (1018 mi) and it
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is therefore one of the highest motorway densities in the world. It requires the purchase of
Vignette, which is 40 Swiss francs for one year. Switzerland has got 66 airports in total. Zürich
Airport is Switzerland’s largest international flight gateway, which handles around 20million passengers every year, followed by Geneva Cointrin International Airport with a yearly total of
10.8million passengers. In 2009 Switzerland got his first Heliport as well. Compare to the world average Switzerland is on place 37 with its 4888km railway in total which carries over
350million passengers annually. Every Swiss citizen ran on an average of 2103km (1307mi) by train, thus there are the keenest rail users in the world. The 65 km waterway is on Rhine River between Basel-Rheinfelden and Schaffhausen-Bodensee. The only harbor is located in Basel.
Switzerland is one of the top recyclers in the world with 66% to 96%bof recyclable materials being recycled. It is heavily active in the recycling and anti-littering regulations. (www.cia.gov)
2.8
Economy
The economy in Switzerland is divided into three sectors; agriculture, industry and services.
"Services" are the most important part of the economy. This includes banking, assurances and tourism. Switzerland is a peaceful, prosperous, and stable modern market economy with low unemployment, a highly skilled labor force, and a per capita GDP among the highest in the world. Switzerland's economy benefits from a highly developed service sector led by financial services and a manufacturing industry that specializes in high-technology, knowledge-based on production. The Swiss in recent years have brought their economic practices largely into conformity with the EU's to enhance their international competitiveness.
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Farming is also an important part of the economy. But the production of the Swiss farmers does not fulfill the needs of all people, so Switzerland must rely on imported goods from other countries. Less than 10% of the population is employed in the agriculture, also considered the primary sector. This sector is strongly supported by the government. About 40% of the population is employed in the industry, trade and handicraft, also considered the secondary sector. This sector includes the machine and metal industry, watch industry and the textile industry. All of them export much of their products to foreign countries and suffer a lot because of the expensive Swiss Franc. The fact that Switzerland does not belong to the European Union additionally slows down the Swiss exports. More than 50% of the population is employed in the services also considered the tertiary sector. This sector includes banking, assurances, tourism and so on. Banking is one of the most important businesses in Switzerland. Many of the banks have started to use the Internet for business purposes.
Switzerland is one of the countries with the highest contribution of the foreign trade to the gross inland product. The most important trade partners are the so called "industrialized countries". In
2003, 77.2% of the exported goods were shipped to and 89.0% of the imported goods came from those countries. In particular, 60.3% of the goods were shipped to and 81.7% of the imported goods came from countries which belong to the European Union. The most important Import trade partner of the Swiss Confederation are Germany, followed by Italy the Netherlands and
France, therefore on the other hand the most important export partners with Germany on top, followed by the USA, France and Italy. The most traded goods are chemicals, machines, vehicles, Precision tools, watches and jewelry.
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Nowadays, one US dollar costs approximately CHF 1.25 and one Euro corresponds to about
CHF 1.55. These ever changing exchange rates are one problem in comparing costs of living.
The actual salary depends on the education, the position within the company or organization, the duration of the employment etc. This numbers should give a short overview of the today’s salaries in Switzerland; with an apprenticeship, typically 3-4 years, between CHF 40000-80000, with an academic education between CHF 70000-150000. The “lower” management level gets approximately between 120000-150000 and at the higher level of management salaries tend to be
CHF 200000 and higher, all numbers are shown as a yearly gross income.
The GDP purchasing power parity in 2008 was $316.7 billion, and the real growth rate was
1.6%, the lowest since 20 years. The GDP per capita was $41,800 in the year 2008, that is rank
18 in the world. The total labor force was 4.053million with an unemployment rate von only
2.6%.
Switzerland’s revenues in 2008 were $189.8 billion, included expenditures of $185.2 billion. The inflation in the consumer price index 2008 was 2.4%. Switzerland’s whole stock of money is
$207 billion, which is rank 11 worldwide- while their reserves of foreign exchange and gold counted $74.07 billion. One of the richest countries in the world! (www.cia.gov)
2.9
Education
Since Switzerland has no natural resources, education and knowledge have become very important resources. Therefore Switzerland claims to have one of the world's best education systems. Because the cantons are responsible for educational services; kindergarten, schools, universities, education may vary significantly between cantons. For example, some cantons start
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to teach the first foreign language at fourth grade, while others start at seventh grade. This can become to a problem when families are moving between the cantons. (www.ausbildungweiterbildung.ch)
2.10 Politics
Switzerland has got the second oldest federal Constitution in the world, adopted in 1848. It is a legal foundation of the modern federal state which was new constituted and adapted in 1999.
It outlines basic and political rights of individuals and citizen participation in public affairs. It also defines the federal jurisdiction; authority and the confederation.
The Switzerland bodies on the federal level and therefore the three main ones are the bicameral parliament for legislative; the Federal Council for executive; and at least the Federal Court for the judicial affairs.
The council of state has got 46 representatives in total, two each of every canton and one from each half canton. They are elected from their cantons under a special system. The Council o f
State and the National Council, which consists of 200 people who are elected under a system of proportional representation, are building the Swiss Parliament together. All members of the
Swiss Parliament serve for 4 years.
Switzerland has got a direct democracy, what means the Swiss citizens are subject to three legal jurisdictions: the commune, canton and federal levels. The instruments of Swiss direct democracy at the federal level, known as civic rights, include the right to submit a constitutional initiative and a referendum, both of which may overturn parliamentary decisions.
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The collective Head of State, the direction of the federal administration and the federal government in general are constituted by the Federal Council. The seven members of the Federal
Council are elected for a four-year mandate by the Federal Assembly, which also exercises oversight over the country.
The President, who is since March 2009 President Hans-Rudolf Merz with Vice President Doris
Leuthard on his site, is elected by the seven members of the Federal Assembly in rotation and for one-year term. President Hans-Rudolf Merz chairs the government and assumes representative functions. Since 2007 the seven seats in the Federal Council were taken by 2Social Democrats, 2 Liberal
Democrats, 2 Swiss People’s Party and only one Christian Democrat.
The Federal supreme court hears to appeals against rulings of cantonal or Federal Courts and is elected by
the
Federal
Assembly
for
six-year
terms.
(www.cia.gov)
(www.
www.swissworld.org/de/politik)
2.11 Foreign relations and International institutions
Switzerland is one of the youngest full members of the United Nations since 2002, but was still the first of all states who join it by referendum. The Switzerland Confederation has got diplomatic relations with almost all countries in the world, but not to forget is that Switzerland is still not a member of the European Union. An incredible high amount of international institutions have their seats in Switzerland, a main reason for that is its policy of neutrality. Geneva is a good example to visualize the good international relations Switzerland has got worldwide. Geneva is the second biggest centre for the United Nations after New York- Switzerland was a founding member of the League of Nations; it is host to many UN agencies and about over 200 other
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international organizations. The World Economic Forum is based in Geneva as well as the World
Health Organization, International Telecommunication Union and the European Broadcasting
Union. Switzerland, in general, is a member of many international organizations, including the
World Trade Organization, Organization for Economic Co-operation and Development,
European Free Trade Association, Council of Europe, Organization for Security and Cooperation in Europe, International Atomic Energy Agency, and INTELSAT. (www.wikipedia.com)
(European Business Magazine, 09/09)
3.0
Hofstede’s Cultural Model
Hofstede’s cultural model is based on the following four dimensions: Individualism/Collectivism
(IDV), Uncertainty Avoidance (UAI), Power Distance (PDI), and Masculinity/Femininity (MAS)
(Punnett, 2005). Together, these dimensions assist a marketer in becoming sensitive to cultural values and structuring a successful marketing strategy for the new geographic location.
Switzerland features very high levels of Masculinity/Femininity (MAS), a high level of
Individualism/ Collectivism (IDV) moderately low levels of Uncertainty Avoidance and the lowest levels of Power Distance.(Hofstede, 2001).
Taking care of these levels is important in a sunglass marketing plan, as it continues to help the marketer become accustomed to the country’s culture. The measures are also important because they give a well-balanced overall national rating that tracts change and are easily comparable to other countries, which may simplify in the development process if marketing to similar cultures.
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3.1
Individualism/Collectivism
Individualism/Collectivism is the level of importance given to an individual compared with the level of importance given to collectivity in a society. In a society with high levels of individualism and low levels of collectivism, individual achievement, leadership and decision making are important. Personal opinions are valued and family loyalty is strong. Conversely, a society with low levels of individualism and high levels of collectivism focuses on group achievement and decision making. The needs of the group are placed before individual needs
(Punnett, 2005). In conclusion, Individualism versus Collectivism is the degree to which individuals are integrated into groups. On the Individualist side, everyone has to look after him/herself or his/her immediate family and on the Collectivism side people are from birth onwards integrated into strong, cohesive in-groups, often extended families.
Individualism (IDV) is Switzerland’s second highest Hofstede Dimension at 68. Comparing this to the European value of 61 and a world average of 43, the Swiss population is individualistic in nature versus collectivist. Switzerland’s council of state has got 46 representatives two each of every canton and one from each half canton. Furthermore, all three sections of the country share governmental roles and work together in the combined federal assembly, which is another indicator for Individualism. Nowadays, Businesses in Switzerland focus on team work more than ever. 3.2
Uncertainty Avoidance
Uncertainty Avoidance deals with a society’s tolerance for uncertainty and ambiguity. It indicates to what extent a culture programs its members to feel either uncomfortable or comfortable in unstructured situations. Unstructured situations in this case are novel, unknown,
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surprising, and different from the, usual in general. In a country with low levels of uncertainty avoidance, citizens are more accepting to change and often dispute topics of conflict or debate.
There may be fewer societal rules or social norms. Citizens tend to be more liberal. Conversely, citizens of a country with high levels of uncertainty avoidance prefer societal structure and formal rules. They do not willingly accept rebellion or new ideas (Punnett, 2005).
Switzerland has a moderately low level of avoiding uncertainty. The population is more accepting of unique and unusual situations and ideas with greater tolerance of divergent points of view. Citizens favor decisions that are more risky, managers who have fewer written rules and offer less-structured work environments (Taylor, 2007). Citizens are more willing to accept “leftwing” politics and ideas, being open to highly debatable topics. The Swiss society tends to have fewer rules and regulations relative to high UAI index countries. (www.gert-hofstede.com).
They are Liberals and risk takers, are open- minded for innovations and can handle changes in their environment very well.
3.3
Power Distance
Power Distance is the level of formalization of discrimination within a country. It shows the extent to which the less powerful members in an organizations and institutions (like the family) accept and expect that power is distributed unequally. All parts of society are unequal, but some are more unequal than others and Power Distance is a measure of this inequality. This includes a definition of society and social classes and implies that this definition is sanctioned by followers
(the citizens) and leaders (the social norms created or people who pass this belief around)
(Punnett, 2005).
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The Power Distance (PDI) at 34 is the lowest Switzerland’s lowest Hofstede dimension.
Comparing this to the World value of 55 and the European value of 45 indicates that the Swiss population has a relatively equal distribution of power across the population’s societal structure.
There is an expectation by the general population that power and control of the society shall be more equally distributed among all the members of the society. (www.gert-hofstede.com).
A really good example to project the Power Distance Index on Switzerland is again the example with the representatives of each canton. It shows that the “power” is well distributed in the country. Swiss Businesses allow their employees to share their ideas and to have a certain level of authority as well as the employees will receive feedback of their managers.
3.4
Masculinity/Femininity
The Masculinity/Femininity Index determines the level of importance of lifestyle roles between genders. Throughout the world, men traditionally hold a role of power, assertiveness and are highly competitive, creating the “masculine” label. Women tend to be more timid, caring and modest, creating the “feminine” label. However, in some countries, the roles are reversed and men can be “feminine,” and women, “masculine,” but there is still a gap in values.
This index measures the amount of masculinity or femininity on a traditional culture or individual basis.
Hofstede focuses on the
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cultural basis (Punnett, 2005).
The highest ranking of Geert Hofstede Dimension for Switzerland is Masculinity (MAS) at a value of 70. This compares to the world average of 50, and the European average of 59, indicates a higher polarization between the values of Swiss men and women. The implication is strong gender differentiation in which the male population is competitive and assertive relative to the female population. This relationship does foster greater assertiveness in the female population as well, relative to countries with low MAS Indexes, like the Norway with an MAS Index value of
8 or the Netherlands with 14. Businesses practice an unofficial “glass ceiling;” men hold the majority of power positions. In recent years, women have gained more authority in business affairs: As the history of Switzerland shows, the combined federal assembly of Switzerland elected the first woman as executive authority on the 02.10.1984 which was Elisabeth Kopp.
Compared to France, what had its women’s suffrage back in 1769, Switzerland kept their very traditional view
on
masculinity
very
long.
(http://www.geert-
hofstede.com/hofstede_switzerland.shtml)
4.0
Sunglass Marketing Implications
A United States based sunglass company would be well received in the country. Hofstede’s
Cultural Model reveals that the very high levels of Individualism reveal that Switzerland’s citizens are independent and forward thinkers. This would prove beneficial, as these types of personalities would recognize the need for and appreciate sun protection as they participate in outdoor activities.
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Switzerland offers many outdoor activities. We would start the advertising campaign in this environment and make it the focus. Even though the Swiss population is known for its high levels of masculinity, our company would focus on both men and women. Switzerland’s target market, climate, income levels, and infrastructure/governmental regulations would give our company a strong advantage in this country’s market.
4.1
Potential Market/Target Market
Based on my research of Switzerland, we know that Switzerland is one of the wealthiest countries in the world. Our potential market would definitely be build up in the adventure sector of leisure activities, vacations, recreation. Switzerland has many great skiing resorts with all the amusement facilities in the winterand hiking, mountain climbing, biking, swimming, golf courses and many other enjoyable free time activity opportunities throughout the
whole year. Switzerland is well known for its great vacation facilities and celebrities from all over the world enjoy Switzerland’s skiing trails many times a year. Finally, many celebrities even decided to live in Switzerland because of the good and low tax system, which would be another advantage for our advertising campaign.
Switzerland is also an advertisement challenge because of its domestically cultural differences.
The strong influences Germany, Italy and France and the extremely high rate of tourism the year round. Due to the facts mentioned about the sunglass company offers products at middle to high price points.
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This allows for a broad target market; but, because of Switzerland’s high level of interest in adventure sports and recreational facilities, the company will specifically export their sporty and luxury recreational fashion line. The sunglasses in the sporty line are streamlined, feature special grip technology and have polarization, UV protection, scratch protection and prescription lens options. The company offers men’s, women’s and teen’s styles in all different kind of sport line models and colors. The sporty line also appeals more casual exercisers who are looking for strong frames with personalization specification options. The luxury recreational fashion line is the company’s joker for the well known and very important Après-Ski in Switzerland. This line will have its main focus on style. The customer can choose the frame model and has the choice between 4 colors- black, white, gold and silver. The target group covers young professionals up to well experienced, high-standing and well known personalities and as a matter of course. In conclusion wealthy, successful high-profile personalities.(Target Group aged
22-66 years old.)
With these lines in mind, the sunglass company is targeting citizens who are active and participate in popular sports as well as the high society enjoying the Swiss vacation facilities and their motto “see and be seen”. Our company satisfies our target customers with eye protection for all kind of life circumstances- such as cycling, hiking, climbing, golf, tennis, rowing, skiing and snowboarding as well as “see and be seen” at the “place to be”.
4.2
Lifestyle and Leisure
Citizens of Switzerland have a very high quality of life and are very active in their communities and environments.
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The Swiss have a well-deserved reputation for being hard workers, but they enjoy their leisure as much as anyone else. Leisure activities range from taking part in grueling sports to relaxing with family and friends.
Of course Switzerland is also well known for all kinds of winter sports and his extreme high tourisms branches.
The Swiss work a lot, but they also know how to enjoy their time off. Spending time with friends, reading and going for walks are among the most popular pastimes, according to a
Federal Statistical Office survey of 2007.
More than 62% the population engages in some kind of sports activity at least once a week.
Attending a course and playing a musical instrument came at the bottom of the list.
Due to the facts mentioned above, both of our sunglass lines will be really successful in
Switzerland. The sports line sunglasses as well as the luxury line.
4.3
Climate
The background information research of the company shows, that the temperature in Switzerland is moderate with no extremes of hot and cold, so Switzerland can be visited at anytime of year.
Summer is warm to hot lasting from about June to September, and although good for outdoor activities it is also the most crowded time for a holiday. In the plain, temperatures can rise to
30ºC (86ºF) in the summer, and even in the mountains the sun is hot, perfect for people to be outside doing activities and needing eye protection.
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Switzerland’s overall landscapes attract tourists, who may purchase sunglasses if theirs are forgotten, or just being on vacations and in shopping feeling. Out-and-about exploring and when traveling through the reflective snow in the mountains, sunglasses are a must.
4.4
Infrastructure
Our Company will not have a problem with shipping, by boat or plane, their products to
Switzerland. For shipping by boat, the best choice would be to ship the sunglasses to a German,
Italy or, may be the easiest option, to a French harbor. All of theses countries have an excellent infrastructure system, the only disadvantage at shipping by boat to Germany, Italy and France would be the “Autobahn-Maut”. Switzerland is a country with 66 airports with over 90 international flight options.
4.5
Product Price Range
Due to the fact that Switzerland is one of the wealthiest countries in the world and their really high consuming tourist industry we can come out with our sunglass lines at a quiet high price level. The sport line of sunglasses suggested retail price ranges from $99.90 up to $299.00. All glasses come with a protective case and specialized cleaning cloth. The impressively untamed style starts with durable material that forms massive fangs around the skull. These sunglasses are tagged with true metal icons. This bulldog of art and technology features high definition optics for precision clarity, 100% UV filtering, and unsurpassed impact protection. The sports line comes with in color changeable tortoise frames and with in color changeable lenses. The luxury brand represents the quintessence of luxury. Modern and sexy, it is an exclusive brand that reflects an elegant lifestyle. The luxury sun wear collection uses only the highest quality materials and offers distinctive shapes enriched with historic icons that celebrate the “the must to
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have”. The luxury line of sunglasses suggested retail price ranges from $199.90 up to $599.00.
Different price levels include different features. The least expensive lines include basic sunglasses with sturdy frames with UV protection and basic lens scratch protection. The next level of glasses includes sturdy frames, 100% polarization, UV protection and strong scratch protection. The third model features rein-forced frames, 100% polarization, UV protection and industrial scratch protection. The final level of glasses offers the specifications of the third model and additionally the option of prescription lenses. The price varies depending on the prescription level. All sunglass lines of the company will have at least a 5 year guarantee on the frame and the lenses. Switzerland citizens enjoy a high standard of living and the price of the glasses should not hinder sales. 4.6
Product Positioning
The sunglass company wants citizens of Switzerland to view their sport line of sunglasses as functionally comfortable and “cool”. The luxury line should give our customers the feeling of having something special, valuable and they will see it as an object of prestige. The glasses are made in the United States, and products made in the United States are made with pride and fine craftsmanship, so Switzerland’s customers and of course the tourists can feel confident in the product. 4.7
Media Strategy
Our Company would market their sport line of sunglasses in Switzerland through the use of print and online advertising. The print advertisements would be found in outdoor recreation magazines, travel brochures and specialized sports promotions, where the company would reach its target market. The online advertisements would be found on tourist websites, websites with
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adventure trail maps, and outdoor outfitter’s websites. The company would also re-create their website, giving consumers their choice of country when first hitting the page. This choice would then be specialized to market the sunglasses to the specific culture.
The luxury line of sunglasses in Switzerland would market through the use of print and online advertisement as well. The print advertisements for the luxury sunglass line would be found in business; lifestyle and manager magazines. They would also be found in some selected stores in the high priced shopping street in Zuerich, Basel, Geneva, Bern and St. Moritz.
As mentioned above, a lot of celebrities have chosen Switzerland as their home country. It would be most successful for the company to pick up a Switzerland celebrity or sport star endorsement. As a lot of research shows, consumers make product and purchasing decisions by following someone else’s lead. With selected celebrities they would be following the lead of a popular figure, in turn, seeking personal popularity through the product and therefore if the support was made by a sports star, citizens would purchase the glasses in hopes of them helping their personal sports performance reach their top level, as
Switzerland has high levels of individualism and competitiveness, this would be the most successful option.
The approval advertisement would come at a cost to the American company, but because they are an established brand, the cost should be covered by domestic profits and as the Switzerland sports and luxury brand becomes more popular, it would be a self-paying system.
For an advertisement example with celebrities or a famous sport star the Marketing department came up with some rough ideas. A perfect celebrity for our sunglass campaign would be Michael
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Schuhmacher, the multiple World Champion and Ex-Formula 1 Star. Michael Schuhmacher has chosen Switzerland as his home country and is a figurehead for Switzerland. He could be established in both lines the luxury and the sports line as well.
The celebrity or sports start, in this case Michael Schuhmacher endorser used by the United State sunglass company in Switzerland would feature the person wearing their sport sunglasses while participating in an appropriate outdoor activity. In general, a celebrity or sports star will bring recognition to the sunglass company and with the easy advertisement structure; the sunglasses would soon become recognizable on their own.
5.0
Conclusion
In conclusion, the United States based sunglass company would find its self to be successful in introducing a sports and luxury line to Switzerland. Switzerland offers an economy of free trade, an accessible location with established trade routes, geographically diverse topography for product use and a very large and broad target market. Its individual index creates a level of competitiveness that can be used in creating product popularity and is also considered while the product is actually in use. The sunglass company can use nationally known public figures to create brand awareness and popularity of the sports line.
6.0 Personal Reflection
Basically after terminating this paper project, I have a completely new visualization of my neighbor country Switzerland. It is a country I will definitely visit as soon as I am back in
Germany. I would even go as far to say that I would consider moving there. The national acceptance of outdoor sports and competitive organized sports is a high interest of mine. The
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landscape is beautiful. It is bordered with Germany and it is one of the wealthiest countries in the world. I like the way of Swiss living, its all year round adventure activities, its location and for sure its growing techniques. The free market economy makes it easy for start up businesses to become successful in exporting and importing. The Swiss population enjoys a high standard of living and the national GDP is high.
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7.0
Work Cited
Hofstede, G. (2001). Switzerland Geert Hofstede cultural dimensions explained. Retrieved
October 5, 2009, Web site: http://www.geert-hofstede.com/hofstede_switzerland.shtml
Punnett, B. (2005). Experiencing international business and management: Exercises, projects and cases. Armonk: M.E. Sharpe, Inc.
Switzerland History and Government regulations, Retrieved November 7, 2009
Web site: www.history-switzerland.geschichte-schweiz.ch
Central Intelligence Agency, (2009). Switzerland. Retrieved October 5, 2009, from The World
Factbook Web site: https://www.cia.gov/library/publications/the-worldfactbook/geos/sz.html
Advameg, Inc., (2008). Switzerland: Infrastructure, power and communications. Retrieved
October 6, 2009, Website:http://www.nationsencyclopedia.com/Europe/Switzerland.html
Cateora, P., & Graham, J. (2007). International marketing. New York: McGraw-Hill Irwin
Taylor, Stephan (2007). Cross cultural communication, and Geert Hofstede dimension overview.
Retrieved October 5, 2009, Web site: http://www.cyborlink.com
Advertising Campaign, Michael Schuhamcher for “STING”. Retrieved November 6, 2009, http://www.giarre.com/brillen/sting-katalog.php 32 | P a g e
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