DOING BUSINESS IN SPAIN

Umang Arora - 13169 Ankush Roy Ritesh chaddha Ankit Singh Nikhil kumar Anil kohli -13006 Malhar Shah-13072 Mohit agrawal Dishant sharma Abhinav jain

Consumer behavior Marketing , SIBM-B, 25th July 2011

Background to the presentation

As an Indian Co, we plan to launch a product in Spain This presentation encompasses the various challenges, similarities that as any Indian Company would face whilst entering Spain
Major

Competitors in our segment/product market Cultural Aspects (Cross Cultural) w.r.t. to India Ethnocentrism Effect of Country of Origin

About Spain

(please put population, gdp, geographical area, lang spoken, etc.. Wikepedia info over here please dont directly copy)

Spain-Some Statistics

Spain has a population of 4,60,30,109 (46 million) Spain has a GDP of $1.364 Trillion, which is approximately equal to India.

About India-Spain Relations

India-Spain extend a cordial relations towards each other since establishment of Democracy in Spain(1978) As of 2011, 14+ trade agreements and MoU co-exist. Mainly focusing on

Technology Renewable energy Tourism Agriculture & Allied Products, Food Processing Pharmaceuticals IT Telecom Automobiles

Export-Import
Major items of Indian exports to Spain are: readymade garments, leather, marine products, coffee, silk, pigments, carpets, jute, machinery & instruments, transport equipments, electronic goods etc. Major items of Spain Exports to India are: iron & steel, organic chemicals, leather items, project goods, renewable energy technology & equipments and other commodities. Major presence of Indian companies in Spain TCS, TATA Ranbaxy, TATA-JLR, Suzlon, L&T, Infosys, etc More than 70 Spanish companies today are existing in India.

Trade between two countries

Year Indias Exports to Spain (in US$ mn) 609.1 660.2 731.78 826.5 945.48 1,226 1607 1952 2290 2973 3,454.03 Indias Imports from Spain (in US$mn) 220.5 181.2 196.63 199.90 252.80 277 477 704 672 1012 1,136.2 Total Trade (in US $ mn) Balance of Trade (in US $ mn) 829.6 841.4 928.41 1026.4 1198.28 1503 2084 2656 2962 3985 4590.33 3681.6 4926.6 +388.6 +479 +535.15 +626.6 +692.68 +949 +1130 +1248 +1617.92 +1961 +2317.73 +1408 +1785.78 % growth

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

1.4 10.3 10.5 16.7 25.4 38.6 27.4 11.5 34.5 15.2 -20 +33.81

2,544.7 1136.80 3356.19 1570.41

Our Product- Leather Footwear

Spain is one of the attractive destinations for leather- as a raw material and as leather product. (Put the stats of leather industry/growth /import by spain/ indias share in their import, etc from the pdf I have attached) (I have attached a pdf of leather market in spain. It also includes indias leather show in madrid, please go through it and complete this slide)

Leather - continued

(Continue with the same..

Put major competitors, players, major product line, companies that we myt tie up with)

Ethnocentrism

Modern Spain as a nation may look a single entity, but it is

As divided & diverse within itself as much as India is. Highly independent and culturally proud in itself, like India! 30 million people divided into Regional Groups like Castilian, Basque, Catalan, Sevillian, Valencian, etc

Marketers should recognize the regional characteristics and its sales & distribution channels should be such that
Each region gets special attention Spanish is nationally understood. But Advertising & Communication should be local for effectiveness in

Country of Origin Effect

As the population of Spain is highly ethnocentric to its region

Place a lot of emphasis on the country of origin. Hence, localizing the product accordingly cannot be ignored!

The Spain of modern times has been ultraconservative nation in virtually every aspect economic, political, religion, social. But in the last five years, it is poising itself to attain economic stability. Even after the recession it has been the best performing among the PIGS nation. Thus it now stands at a threshold of a new economic era.

Cross Cultural Aspects

Compared to India, Spain too extends a warmwelcoming attitude. Differences in languages, regions, etc Some simple yet important cues about doing business in context to spanish culture

Value interpersonal relations Patience and Risk Averse people Public Image is valued. Avoid any public embarrassment, criticism, be it on corporate level or personal level. Highly independent be it on technical/business or personal level. The managers prefer more of invidualism than team play, group decisions.

Business Culture..

Greetings

Kiss on both the cheeks(in air), more formal a handshake. They have 2 surnames (Mother & Father). Prefer using Senor or Senora as you would Mr and Mrs. Get acquainted, become warm. Family background Be honest and reliable They would place trust in you prior to your product/business

Addressing a person

Business Meetings

Business Meals

Inform them about the same. Meals for Spaniards is a relaxing and family-friends time. Mostly negotiations are done in office, followed by celebration with a meal.

Business Culture

Conversations

Great conversationalists They enjoy talking about food and wine (and you better agree to what they say!!) Compliment them and thank them for the same. Dont be surprised if an evening out lasts until late hours! They derive a sense of identity from their region rather than the nation, just like India Respect their differences, culture, local sensibilities. Morning 9 am to ~ 2 pm. Lunch 2-4 pm normally at home 4pm to 7 pm

Regions

Business/Office Hours

Dinner usually at 10 pm and is light.

Business Culture

Dress
In Spain the look of the person one is doing business with is important. Classic brand names such Loewe or Louis Vuitton are very appreciated, also Hugo Boss or Ermenegildo Zegna, less so Ferragamo or other Italian names. Look fashionable and smart if you want to cause a good impression; clean your shoes and get your hair in order. Formal dress code means Formal!

a black tuxedo for men and a cocktail dress for women, always in conservative colors. For these events, women wear more make-up, and have their hair done professionally. For men keep in mind that the Spanish cut of the suit is different than the American or British cut.

Business Culture

Gifts
Most companies give their employees a hamper or basket of fancy foods and drink (cestas de Navidad) Gifts at Christmas Champagne, Bottle of Wine, Cava are fine to give on Christmas

You should not give anything too personal or extravagant as your generosity may be perceived as rare or even insulting. If you are invited to a Spanish home, flowers, a dessert, or a good bottle of wine is the right gift.