ANALYSIS OF THE AUSTRIAN MARKET AND DETERMINATION OF MARKETING STRATEGY FOR BOPS PACKAGING FOR THE FOOD INDUSTRY IN THE AUSTRIAN MARKET FOR COMPANY 'X'

Expansion of sales to EU markets is essential for company 'X', as well as for other Slovenian companies, as it provides additional access to regulated and technologically advanced markets. In international trade, regardless of whether it involves operations in the now internal EU market, the essence is not only in the exchange of goods (products), but also in the indispensable ** exchange of services, knowledge and technology**. Despite the relative closedness and unwillingness of Austrian companies for mutual cooperation, shifts in mentality and gradual opening of Austrian companies can be seen.

Problem

Expansion of sales to EU markets is essential for company 'X', as well as for other Slovenian companies, as it provides additional access to regulated and technologically advanced markets. In international trade, regardless of whether it involves operations in the now internal EU market, the essence is not only in the exchange of goods (products), but also in the indispensable ** exchange of services, knowledge and technology**. Operating in a foreign market requires a complex approach, quality management personnel with refined solutions and mentality.

It should be emphasised that the period 2000–2006 brought Slovenia many new challenges, as it had to integrate into cross-border programmes within the framework of the Community initiative INTERREGA. Company 'X' notes that the INTERREG Community Initiative Programme and the parallel drawing of funds from the ** PHARE CBC** programme provided Slovenia with considerable strategic knowledge, which it is successfully exploiting in the form of Austria–Slovenia cross-border cooperation.

Solution and Method

Despite the relative closedness and unwillingness of Austrian companies for mutual cooperation, shifts in mentality and gradual opening of Austrian companies can be seen. It appears that Austrian companies are seeking offers for services and goods that domestic competition does not provide. Interest in inter-organisational cooperation based on the principle of 'reciprocity' is also increasing. The Maribor Chamber of Commerce and STP (Štajerski tehnološki park) Pesnica are actively approaching ** cross-border networking**; how much individual companies will be able to recognise and exploit opportunities remains within their domain.

The diploma thesis will provide an analysis of the Austrian market, which will serve as a starting point for formulating a marketing strategy and positioning the sales programme for BOPS packaging. A communication mix will also be designed for company 'X'. The proximity of the Austrian market and connections on the Slovenia–Austria route will be exploited in practical application.

Company 'X' has created the basic conditions to enter new markets. With full membership in the EU, Slovenia has gained the opportunity to integrate into extensive European economic processes. Slovenian companies have thus been given the opportunity to prove their competitiveness and ability to adapt to new market conditions in the internal EU market.

Company 'X' is a manufacturer of BOPS packaging for the biscuit and confectionery industry. It already operates in the markets of the former Yugoslavia and has established itself as a quality packaging manufacturer. Despite already strong competition, it manages to place 40% of its production in the markets of Serbia, Bosnia and Herzegovina, and Croatia.

In this market, it is increasingly facing financial indiscipline. Due to risk redistribution and acquisition of new knowledge, company 'X' has decided to direct its sales activities also to EU markets. Taking into account proximity and easy access to the market, they conduct an analysis of the Austrian market.

The analysis shows that the Austrian market is competitively mature. Such a market can only be entered with a quality product and competitive price. The market is divided between users of plastic (predominantly PET) and cardboard.

Plastic users are mainly centres (Spar AG, Hofer AG, Lidl AG and Merkur Warenhaus AG), united in the purchasing association 'Rewe Group'. Cardboard users are mainly supplied by smaller manufacturers and cardboard distributors through wholesalers or directly. The largest manufacturer of paper goods is Meierverpackung GmbH.

Entry into the 'Rewe Group' chain would only be possible with articles that internal suppliers (Amprica spa, Hotform spa and Petruzalek GmbH) do not offer, but companies are not prepared to cooperate. The reason appears to be in the well-organised and competitive procurement channels on the part of the chains. The offer of BOPS packaging is interesting; certain potential clients (mainly larger wholesalers and larger manufacturers in confectionery) show interest.

To enter the market, company 'X' has positioned itself, developed a marketing strategy and designed a marketing-communication mix. Company 'X' will, if necessary, have to include additional material (PET) and thus bring the offer closer to the needs and trends of the Austrian market. They will have to individualise the offer (custom-made product), integrate into at least 1 (one) retail chain or acquire at least 1 (one) major customer in the biscuit–confectionery industry.

With the right approach and persistent work, they can exploit the proximity of the market and thus become familiar with marketing practices and follow EU trends. It should be emphasised that company 'X', in addition to adapting the offer to market guidelines (requirements), will have to carry out many activities also in the direction of recognition of the company and the 'EP' packaging brand. It will have to include its activities in trade fair activities, promotion through cross-border networking.

In addition to personal selling, it must also include direct marketing and exploit connecting platforms such as 'SFG GmbH', the Chamber of Commerce and STP Pesnica. If company 'X' wishes to cooperate with some larger confectionery manufacturers, it must integrate into the ARA – Altstoff Recycling system – available at: http://www.ara.at/. Austria AG.

For certain customers, inclusion in the ARA system is not a requirement. If company 'X' manages quality and takes into account change processes, it can successfully integrate into the Austrian market. Abell, Derek, (GV, 1995) state: 'Quality control and control over change processes are completely different in nature.

Both are necessary'.