4. History of Switzerland
In ancient times was influenced by Greeks
In the 6th century, was controlled by the Franks and Roman Empire
Later, gained independence.
Influenced by neighboring countries.
5. Geographical Setting
Western half of Europe.
Surrounding countries have huge influence
Official native languages; German, French, Italian, and Romanish.
German is the most popular - at 65%
Climate lends itself to farming, resource material, and skiing
opography is divided into three categories.
1st - Jura Mountain range
2nd -The Alps
3rd - Mittelland
6. Family
Much like an American family.
Tend to marry later in life.
The divorce rate is 52.6% , close to the 50% in the U.S.
Families consist of 1 or 2 children.
Spending most time together on the weekends, families value the
end of the week
7. Living Conditions
Food
Simple and hearty dishes
Fondue
Rösti (pronounced rush-T)
Wanting more?
Wine
Most own vineyards
Wine tastings
Great honor to be invited
When served, clink glasses
Leisure spending is about 7% of income
Housing
Tightly packed
1/3 own homes
20% of income
Dress
Similar to United States
Status
8. Government Participation
Swiss Government and Political Systems
Concordance Democracy made up of four main parties.
Radical party (most popular within the business community)
Christian Democratic Party
Social Democratic Party
Swiss’s People’s Party
Switzerland government protecting businesses
No Corporate Responsibility
No Social Responsibility
Have Rights
The Trade Mark Protection Act
9. Understanding the Language
https://www.youtube.com/watch?v=CdzQP0hef0g
German standing at 65%
French 18%
Italian 10%
Rumantsch 1%
Other 6%
We will be conducting most of our business in the French and
German areas of Switzerland.
10. Dialects and Different Areas
Each part of Switzerland stick to their own language and dialects
based on their geographical region.
German speaking reside in northern and central parts
The French speaking are in the west
Italian Speaking stands in the south
Romansh are more near the east
11. XO and Language
XO
Adaptable keyboard
Can be switched quickly and easily from one language to another
Perfect for dealing with Switzerland’s diverse languages
12. Business Customs and Practices
The Average Business Person in Switzerland
Ethnocentric
Tend to Stick to the Rules
More on the Conservative Side
Tips when doing business in Switzerland
Always shake hands when meeting and before departing
Stand an arm’s length away during conversation
Do not be late to any sort of meeting
Do not talk about personal lives.
Entertainment gatherings shouldn’t be scheduled after business hours
Always be extremely attentive during all gatherings
13. Business Deals & First Impressions
Swiss Business people are not looking for flashy first impressions.
Business men and women should dress modestly and well
presented.
They don’t feel the need to show off their wealth. (straight to the
point).
Swiss individuals are very private. (Personal Questions & Jokes)
14. Negotiating
Showing up early
15 to 20 minuets
Being prepared
Letting them take the stage before you
Gifts are welcomed but are not common
Company logo
Nothing expressing wealth. (Bribes)
15. Closing the Deal
Never take the risk and shoot for unreasonable numbers
Presentations Focus on creditability/sharpness
Straight to the point (depending on region)
Relationships before anything
Let them run the show (listening)
18. Economic Activity
Minerals and Resource
Main resource is water power.
It makes up 59% of the Electricity used
Transportation systems
Train, bus, boat
One of the finest transportation systems in the world
Communication systems
Telephones, radios, television, print media, and the internet
75.5% of the population uses the internet
19. Working Conditions
Fantastic working conditions, high pay , no minimum wage.
Employer-employee relations are positive
Employee’s ideas, opinions and participation held highly.
Before making decisions, employees are usually consulted.
Have some of the best benefits
Longer work weeks of at least 45 hrs/wk
20. Principal Industries
The proportions of the GNP that each industry contributes:
Services industry, 71%
Manufacturing, 27%
Agriculture business, 2%.
21. International Trade Statistics
Geographical neighbors are biggest trade partners.
High demand products due to high tech, and precision
Major imports ($300 billion); Cars, petroleum, jewelry, mineral
resources.
Vehicles are largest import, due to lack of large car manufacturer
Currency is Swiss Franc, occasionally Euro
Exchange rate: $1 = .95 of a Swiss Franc - little fluctuation
22. International Trade Statistics
Member of the European Free Trade Association (EFTA),
Maintains a close trade relationship with EU.
Huge proponent of free trade, virtually no embargoes or quotas,
except for agricultural goods (going away)
Import taxes, vary by product size, weight and origin.
27.2% tariff on agricultural and 1.9% on non-agricultural
23. Labor Force
Labor force: 4.9 million workers.
Reputation for being extremely technical and skilled.
Unemployment rate is lowest in the world - 2.9%. - Credited highly
skilled & motivated workers
Economy relies on specialized labor and trade, giving equal
balance for employment opportunity.
24. Science & Technology
Switzerland thrives on advancing in science and technology
High quality work In
Micro-tech
Biotechnology
Pharmaceuticals
Banking/Insurance
Imports/Exports
Big Test Market/Testing Grounds(Multinational)
26. Transportation
Transportation
Road, Rail, Boat
Public transportation is most
common due to crossing the
Alps
Train is popular for scenic
mountain trips
Wealth
More money spent on luxury
than on what meets their
basic needs
27. Retail
Shopping
Product feature preferences are important when making a
purchase
Online shopping
Weary about online shopping
across boarders
Consumer pricing is 41.7%
higher than the United States
The more expensive, the better
28. Competition
Ads Used by Competition
Sleek
Sexy
Simple
Switzerland Market
Estimated Industry sale for Europe as a whole is around 22 million
What’s Switzerland’s contribution to that number?
Roughly 5%
TEST MARKET
31. Marketing Objectives
Objective: sell TRONN laptops, to businesses in Switzerland market
How: Prove quality and usefulness of the product
Make businesses want to invest
Target market: Start up companies
Small start up technology company = small numbers.
Market penetration: slower with B2B
32. SWOT Analysis
Strengths - A high quality, Swiss made machine.
Weaknesses - A smaller, lesser known company than its competitors
Opportunities - Take over smaller businesses to start growth
Threats - Competitors such as; Apple, HP, Sony...
33. Channels of Distribution
Warehousing in Switzerland
Bulk Storage Warehouses
Pallet Warehouses
Small Parts Warehouses
Temperature-controlled Warehouses
Overhead Goods Warehouses
34. Distribution –ORGIN TO
DESTINATION
We will be shipping by water
Using containerized intermodal freight transportation
Shipping from the US;
Port: Rotterdam, Netherlands
Will load a truck to ship to our TRONN location to distribute to local
retailers
36. Price Determination
Shipping (from US)
Port: Rotterdam, Netherlands
Transportation by ship: $2,581 for 40 foot container
Laptop box dimensions: 20.25" x 13.25" x 4.25”
12,420 laptops = $0.20/laptop
Shipping (within UK)
Loading and unloading costs: $90
for loads up to 11,000 pounds
Shipping insurance is $6.00
Customs duties: 7.6% import duty for each
laptop
Tax rate: 8%
37. Price Determination
Price Determination / Bulk Order
Gross Margin
Cost to make: $100
Selling price: $250
Illustrates the financial success of our product
38. XO Green Certified
Switzerland is concerned with
health of environment
XO uses minimal power
1 watt
Can be configured to use external
power sources
Solar
Pull start
Pedal
Good for working in the field
Wireless technology
Average use is 10 watts of power
XO uses just .8 watts
Easily replaced battery
39. Durability
Heavy Duty plastic
Not easily broken
Good for business startups
Keyboard
Resistant to water and grime
Field work
