International Business

Summative

Romania

Bianca Chitiu

International Business

BBB4M

Mr. Allen

June 3, 2014

Table of Contents

Introduction and RationalePage 4

Stage 1 Country Facts and StatisticsPage 4-11

GeographyPage 4-7

Country Name

Major Cities

Major Ports

International Airports

Major Highways

Major Rail Lines

Physical Characteristics

Area

Time Zone

Climate

DemographyPage 7-9

Population

Growth Rate

Age Distribution

Life Expectancies

Rural vs. Urban

Literacy Rates

Ethnic Groups

Religious Groups

Languages Spoken

EconomyPage 10-11

GDP per Capita

Inflation Rate

Unemployment Rate

Currency Name, Exchange and Stability

Income Distribution

GDP by Sector

Top 3 Imports

Top 3 Exports

Stage 2 Political ProfilePage 12-13

GovernmentPage 12

Type

Head of State

Date Government was Elected

Date of Next Election

Countries Views on Trade

Tariffs, Quotas, Embargoes

Political IssuesPage 12

Political Situation/ Stability of Government

Corruption

Military Roles

Business Climate

Human Rights IssuesPage 12

Human Rights Abuses

Child Labor Issues

Gender Issues

Legal IssuesPage 13

Bribes, Graft, Unauthorized Payments

Copyright Infringement

Intellectual Property Issues

Labor Standards

Stage 3 Company/ProductPage 13

CompanyPage 13

Name, Address, Location

Owner

Number of Employees

Corporate Structure

Product Lines

Export Experience

Successful Company Domestically?

Marketing Mix For Product SelectedPage 13

Product

Price

Promotion

Place

Stage 4 Marketing Your Product in Your CountryPage 13-16

CulturePage 14-16

Languages Spoken

Business Language

Acceptable/Unacceptable Topics of Conversation

Non-verbal Communication

Use of Humor

Business Customs

Gender Roles

Business Negotiations

Other

Stage 5 International Marketing PlanPage 16-19

Product(s)Page 17-18

PricingPage 18-19

Promotional StrategyPage 19

PlacePage 19

Stage 6 Recommendations and ConclusionsPage 20

Bibliography Page 21-23

Introduction and Rationale

Romania is an interesting country that is part of Europe that recently integrated in the European Union. It has the fastest rate of development in the EU, and has experienced many different social and economic systems. It is currently undergoing a transformation with the chance to become one of the largest economies in the EU. Canada has ties with Romania since 1970, when Romania was still a communist country; Canada had a consortium of companies that built the Cando Nuclear Power Plants in Romania. Since then Canada and Romania have developed a history of good economic relations. I consider that Romania is a very interesting country because of the position in Europe as well as the economic ties with Canada. I believe that Canada has a potential of developing wide trades with Romania, therefore my project will talk about Romania and how a small Canadian company can benefit investing in it.

Stage 1 Country Facts and Statistics

History

Romania was formed 2000 years ago between the native population and the roman invaders. Due to such a strong connection with the romans, it developed a Latin language. Romania was then like an island of Latinity, that formed a good culture with the Roman Empire and became an advanced country, surrounded by Slavic speaking countries. It wasnt until the end of World War Two where Moldova, which was then apart of Romania, separated and became part of the Union of Soviet Socialist Republic, which quickly lead to Romania becoming a communist country, under the influence of Russia. In 1989, a revolution occurred which lead Romania to become a democratic country, and in 2007, it became a part of the European Union.

Geography

Romania is in southeastern Europe at the north end of the Balkan Peninsula, bordering Ukraine and Moldova to the north, Hungary to the northwest, Serbia to the southwest, Bulgaria to the south, and the Black Sea to the east. Although it is not a very well-known country in the international community, it is still a large European country. Romania has a population of 21.8 million and a surface area of 238,391 square kilometers, while Canada has a population of 34.6 million and a surface area of 9,980,000 square kilometers, making it a large country in Europe. (Central Intelligence Agency)

(Political Map of Europe)

Country Name

Conventional long form: noneConventional short form: Romania

Timisoara

Targu Jiu

Targu Mures

Tulcea

Satu Mare

Sibiu

Suceava

Major Cities

Bucharest

Alba Lulia

Arad

Baia Mare

Brasov

Brailia

Cluj-Napoca

Constanta

Craiova

Constanta

Craiova

Galati

Iasi

Oradea

Major Ports

Moldova Veche

Oltentia

Orsova

Sulina Tulcea

Other

Timisoara

Danube River

Bechet

Braila

Calafat

Calarasi

Cernavoda

Corabia

Drobeta Turnu Severin

Galati

Giurgiu

(Redirect Notice)

Mapsofworld.com

Black Sea

Constanta

Mangalia

Midia

Danube-Black Sea Canal

Luminita

Medgidia

Murfarther

Ovidiu

International Airports

Satu Mare

Oradea

Arad

Timisoara Traian Vuia"

Craiova

Sibiu

Targu Mures

Henri Coanda

Iasi

Bacau

Constanta Mihail Kogalniceanu

Major highways and railways

Infrstruct

About.com Cruises

Other physical characteristics

Water Danube River is Europes second longest river after Volga. This river has become an important source of hydroelectric power and of irrigation water for farming. Romanias rivers are mainly tributaries of the Danube.(Romania Geography (Location, Area, Map, Land, Climate, Terrain, Environment)

Main Largest Lakes

Razim (415 sq.km)

Sinoe (171 sq.km)

Golovita (119 sq.km)

Main Largest Rivers

Danube (1,075km)

Mures (768 km)

Olt (736 km)

Prut (716 km)

Siret (596 km)

(Redirect Notice)

TerrainThe Carpathian Mountains (the tallest peak is at 2544 m, 8346 ft) cross Romania from the north to the southwest. They account for about a third (31%) of the country's area. Another third of Romania (33%) is covered by hills and plateaus full of orchards and vineyards, and the final third is a fertile plain of dark chernozem soil where cereals, vegetables, herbs and other crops are grown.

Land usearable land: 41%forest and woodland: 29%permanent pastures: 21%permanent crops: 3%other: 6%

Time ZoneRomania is 7 hours ahead Canadas time.

(Redirect Notice)

ClimateThe warmest month is July and the coldest month is January. The Record High Temperature is44.5C (112F) - August 10, 1951 South-Eastern Romania and the Record Low Temperature is-38.5C (-37.3F) - January 24, 1942 (Central Romania). The average annual Rainfall is 26 inches. (Wikipedia)

Demographic

Bianca Chitiu

Bianca Chitiu

Bianca Chitiu

Population Growth Rate is - 0.02 mil/year. Approix. a decrease at about 1% per year

Literacy Rates

Economic

Final goods and services produced per person is $12,500

2014$9,086.8

The annual percent change in consumer prices against the previous years prices. 3.3%

20142.9%

The percentage of labor force that is without employment. 5.6%

20146.9% of total labor force

Currency Just like Canada, Romania has their own currency. Instead of going by dollars they go by leu. In order to have 1 Canadian dollar you would need 2.97 leu.

Currency Stability compared to Canada

Income Distribution

GDP by sectorAgriculture 7.5% Industry 33% Services 59.5%

(22.2%), one fifth or more of the population was viewed as being at-risk-of-poverty.

Top 3 Import Partners

Germany

Italy

Hungary

Top 3 Export Partners

Germany

Italy

France

Stage 2 Political Profile

Government

Romania is a Democratic Republic country with three major power legislatives; the parliament, the executive represented by the Prime Minister and his ministries, and the judicial. The Government was elected and appointed on December 9 2012, where Victor Ponta was named by the winning coalition of parties as the Prime Minister. Ponta is still in power today along with Traian Basescu, the President, who was elected in November 29, 2009. Even though Basescu has been in power for almost 10 years he has very limited powers, his power is more over the legislative and the executive branch. Usually presidential elections are held every 5 years and parliamentary elections are held every 4 years. For this year 2014 the presidential election hasnt been established yet.

In 2007 Romania became a part of the EU, therefore making its trading partners and policies in line with the EU (Ask). Romanias major trading partners are with the countries in Europe. Romania imports 3.8% from china and their major exports are with Italy (Top Romania Imports). Romania fabricates shoes and starts fashions which are then applied and sold in Italy as well as they fabricate the most sold low cost cars in Europe, the Dacia san Derneo. Romania doesnt have specific embargoes or quotas however it complies with all EU quotas and embargoes Iran, North Korea.

Romania has one of the lowest tariffs and taxes in the EU. There is only one tax of 16% for most (business taxes, income) this is includes the tax equivalent with the HST (TVA). Other import and export taxes and tariff are in line with the EU requirements. (Adrian Chitiu)

Political issues

Romania is a country that is still transitioning from a communist country into real democracy. The Presidents government is made out of a number of corrupt individuals who try to avoid law. The president is the one whos fighting for the justice. There is an open conflict between the Prime Minister who protects his corrupt colleagues and the President. Even if it appears that the country has a stable system, this open conflict brings little trust in the stability in the Romanian political system. The coalition in party now tried many times to overthrow the President in order to have better control of the justice system. Corruption reaches high levels of politics and is spread through the government. The high level of corruption extends down to every level of government including local governments.

Another political issue is the climate. The climate affects businesses that have to navigate their way through corruption with bribes. They cant absorb the funds allocating for the country by the EU.

As part of the NATO (North America Treaty Organization) the army has the role of protecting the countries border and to cooperate with NATOs countries and participate in NATOs missions. Army has limited roles (close to nothing) in todays politics. (Adrian Chitiu)

Human Rights

There have been 25 years since the revolution that overthrew the dictator Nicolae Ceausescu. Since then, there are very little human right abuses and if there are, they are more related to corruption than government inflicted ones. Other abuses appear during manifestations but are at the same level as any democratic country. There is almost no child labor, however in small Roma communities (Gypsy community) some children are forced to beg and steal. There is little to no gender issues, however you can find woman rights diminished in rural communities. (Adrian Chitiu)

Legal Issues

As presented the high level of corruption such as all aspects of Romanians, bribes are a part of the life style which extends to officials to doctors to law enforcement and touches even the justice system. Tax evasion is also wide spread, there are a variety of unrecorded workers and payments are made between businesses without keeping any records. Law enforcements are making slow progress and their work is focusing mostly on the large corruption cases. Copyright violations are also widely spread as law enforcements dont have resources to fight the violations. Large businesses are scrutinized and comply with copyright and patent legislation. Labor standards have evolved and have tried to comply with the EU standards. In some businesses those labor standards arent respected at their fullest. (Adrian Chitiu)

Stage 3 Company / Product - Current Status

Company

Smokes Poutinerie is a Canadian nation-wide company who is the first in the world that offers a broad menu exclusive to Poutine. Its global headquarters is on 85 Kingston Road East, Unit #5 Ajax, Ontario, L1S 74J. It was founded in Toronto in 2008 by an entrepreneur, Ryan Smolkin (Wikipedia) and is now a franchise nation-wide with over 60 locations and millions of employees. All the dishes on the menu include daily hand-cut yellow fresh fries, custom seasoning, fresh Quebec cheese curds and their signature homemade gravy; the other ingredients are added at the customers demand. Smokes Poutinerie doesnt have any export experience, the company was founded only a few years ago and their goal was to reach a nation-wide market, which they did. They are now looking to bring the authentic, quality Quebec classic dish to the rest of the world in an original and unique way; therefore exporting their product wont be out of the question. (Smoke's Poutinerie)

Marketing Mix for the Product Selected

The product is daily hand-cut yellow fresh fries, custom seasoning, fresh Quebec cheese curds and their signature homemade gravy; the other ingredients are added at the customers demand. Depending on the added ingredients and the increased size the price changes, which can be up to $9.99, a traditional regular poutine is $5.49. (Smoke's Poutinerie) Other than just having over 60 locations nation-wide, Smokes Poutinerie also has a catering service for all events in Alberta, British Colombia and Ontario. Unlike most companies that use a variety of marketing techniques to sell their products, Smokes Poutinerie uses mostly word of mouth from people who have tried their products, love it, and wish that their family and friends give it a try. (The Globe and Mail)

Stage 4 Marketing Your Product in Your Country

In order for a company to succeed internationally they must look into many aspects of the importing country. Culture is a very important aspect of determining whether a country has a need and want for a certain product. A culture is the attitudes and behavior characteristic of a particular social group.

(Unirea)

Culture

Languages Spoken

Romanian 88.9%

Hungarian 6.5%

Roma 3.2%

Ukrainian, German, Turk, Russian & Lipovani 1.4%

Business Language

First impressions, body language, clear simple terms, being well prepared and negotiations are crucial to success in Romania. In Romania, when business partners meet for the first time the custom is for them to shake hands as they greet each other with a simple hello and how are you form of greeting. In order to make a good first impression one must pay attention to facial expression, comments and attitudes. The way one talks and presents themselves is as vital to the success of a meeting as the content of your proposals. They must maintain a professional attitude and have the ability to stay calm and polite throughout tense discussions; working together to find resolve differences and find a mutually beneficial compromise. The use of clear simple phrases is highly recommended in order to reach an understanding of what is required to do. Most businesses have different rules regarding service providers and codes of conduct, therefore being well prepared and gathering as much information on the company as possible will show that theyre confident and know what theyre doing. Lastly, negotiation is the most important part of doing business in Romania, therefore it is crucial to know how to negotiate and behave in order to seal a deal. Overall, Romanians have an appreciation for a healthy mind and body; looking the part and coming prepared will result in a healthy business relationship. (Business Culture)

Acceptable Topics of Conversation

Romanian history

Romanian arts

Sports, especially soccer

Romanian food and wine

Romanian landscape

Romanian famous opera singers

Praising the hospitality youre receiving

(Bizzconnect)

Current events (Romanias Cultural DOs and DONTs in Business)

Unacceptable Topics of Conversation

Religion

The Orthodox Church and its policies

Politics

Taxes

The corruption in the Romanian administrative system

Criticizing Romanian culture

Romanian stereotypes

Negative comments about the local soccer team

Questions about private family concerns

Inquiring about profession and income of those one just met

Non-verbal Communication

Romania falls in between English and Italian in their use of non-verbal communications. People use a lot of gestures and facial expressions when talking. The expressions should be interpreted in relation to the specific context and taking into account the allusions, innuendos and pertinent remarks. Lastly, direct eye contact is appreciated in Romania. (Language Learning for Kids Dino Lingo Blog)

Use of Humor

Romanian people have a strong sense of humor and have a lot of auto-critical jokes. They are usually opened minded and know that jokes are just jokes. They dont tend to get upset or frustrated when someone makes a joke. Most of their jokes are about bad politics. It is okay to make jokes when in a business meeting. They like to know that you can be serious when it comes to business but can also relax. (Chitiu Adrian)

Business Customs

Greetings:

Men to Men

If its a new acquaintance, men will shake hands.

If its a friend, many will grasp hands and hug.

Some close friends and family will kiss on both cheeks.

Woman to Woman

With a new acquaintance they will shake hands only if one initiates it.

Typically they would kiss on both cheeks.

They would hug a good friend.

Man to Woman

If theyre new acquaintances and the woman is older the man would kiss her hand.

They might shake hands only if the woman initiates it.

A friend would kiss each other on both cheeks.

A good friend would also hug. (Romania - Culture, Customs & Etiquette)

Note: Young people will greet elders by saying buna ziua meaning good day. To a woman or a priest one greets them by saying sarumana meaning I kiss your hand. Young people greet themselves saying salut, servus or allo. (Language Learning for Kids Dino Lingo Blog)

Gift Giving:

Gifts arent generally exchanged at initial business meetings.

If invited over for dinner one should always bring a gift.

High quality of imported wine

Liquor

Flowers

Dessert

Always give flowers in odd numbers; an even number is given only at funerals.

Gifts are opened when received. (Romania - Culture, Customs & Etiquette)

(Addhugger)

Business Dress:

Men wear a dark suit, white shirt, and a tie with polished shoes.

Women wear an elegant style. Usually a business suit with a skirt and high heels.

Tipping:

Very low tipping, as it assumed that the employer provides the right salary.

In restaurants tipping goes up to 10%.

Time Management:

Arrive 5-10 minutes early for a meeting.

10 minutes late is acceptable.

After 15 minutes one must call to say that they will be late.

After 30 minutes one should reschedule the meeting.

Gender Roles

Majority of women work outside the home but tend to have lower-level positions that are in traditional female fields. Children dont usually work until they reach 18 years old. Parents focus their children towards learning; to get a high school diploma.

Business Negotiations

Stay at one of the most prestigious international hotels.

Most Romanians speak English but a translator will still be needed.

Select your negotiating team using only the most important people in the organization.

Business cards are important, have them translated to Romanian on the other side, and bring a lot.

Senior Romanian businesspeople have less information on their business card.

Expected to behave with decorum and formality. What others think is very important.

First meeting should cultivate feelings of trust and respect.

Whether ones worth doing business with is more important than the details of the proposal.

All presentation materials and packaging must look good. The appearance is considered more important than what is actually inside.

Romanians are receptive to new ideas and concepts.

Tremendous respect for power.

Person with authority rarely raise their voice.

Romanians are guided by feelings; they must like a person before doing business with them.

Romanians base their decisions on what worked with others, if the subject doesnt correspond, the idea is then rejected.

Older Romanians respond to questions with long stories that suggest an answer, be patient.

Most of decisions are made in closed quarters with just the highest figure in authority.

Risk taking is very low; decisions are slow and can take up to a year.

Employees are expected to provide reports and plans of their work.

Complimenting and rewarding an employee publicly is not done.

Receptive to criticism.

Office and washroom doors remain closed, always knock before entering.

Stage 5 International Marketing Plan

Name: Bianca Chitiu

Country: Romania

Company: Smokes Poutinerie

Product: Poutine

Product(s)

One fresh poutine has the power to fulfill anyones needs and wants. The product would typically be considered a need because its food is more or less a healthy alternative; however, its a fast food therefore classifying it as a want. Even though a Smokes Poutine is made out of only fresh ingredients at the order of one, because its not something people can buy in groceries from scratch and make it themselves because it will never have that proper Canadian poutine taste. Its competition is right with McDonalds and other fast food places, which are all considered wants.

The targeted market for the product would be anyone, since it doesnt only appeal to a gender or age basis. Its an alternative to a fast food place, where someone can go and receive fresh products to eat, rather than frozen ones. Its portions arent too big but not too small, therefore anyone going out for lunch or dinner can order one poutine and be satisfied. Poutine made by other companies is already found in France; in Canadian pubs, French fries shops and other small restaurants, as well as in Germany and the United Kingdom. (Poutine La Banquise) Romania has a very close culture to France and holds links with Germany and the United Kingdom; therefore if these countries like the idea, which they do, many people in Romania would also buy the product. The difference between the poutines sold in Europe now is that the majority dont have the option to add other healthy products on it and it poutine itself is made so everything is greasier and more unhealthy. Just like any fast food place Smokes Poutines will be sold daily, with a high probability that many will be coming daily to buy the product.

Romanias weather isnt too far apart from Canadas. Yes winters are a little warmer but the product is made and can be used throughout the year. The climate doesnt pose any threat in the making of it. Gravy is found very hard in Romania but they do sell cheese, meats and vegetables all year round, therefore putting it all together wouldnt make any difference.

Purchases arent affected by geography. Once the product is in Romania it will be very easy to transport it from place to place but in order to get it to Romania the cost of shipping and the length it will take to transport it might be high.

Smokes Poutine doesnt conflict with any traditions, habits or beliefs. Like in Canada there are a few people that cant eat certain meats and others that dont eat meat at all. This product reaches the standards of Canadians supplying them with what is asked, the same applies in Romania. There will be some that dont eat a certain meet and some that dont eat meat at all, but everyone at one point in their lives will stop by at a fast food restaurant to get some food, so in the end because the products are made to a consumers wants it wouldnt go against any beliefs or traditions others may have.

As stated above since poutines are rarely sold in Europe and have not been sold in Romania, there is no competition on which place makes the better one. Even if many heard about the idea of them and tried making them, theyd never succeed in making a Canadian tasting poutine. By being healthier than other poutines and being the first one to make and deliver them in Romania is what makes them unique.

There would be no direct competition with Smokes Poutinerie since there isnt company that makes poutines. Their only competition would be with other fast food places: Fat Boy that serves burgers, Subway that serves sandwiches, McDonalds that serves burgers, wraps and salads, Tribel serves pizza and pasta, Snack Attack serves sandwiches and salads, etc.

As stated above, there is no place that serves poutines, therefore the competitive advantage is that if many want to try or really like eating poutines the only place to get them would be at Smokes Poutinerie. No customers would look at other fast food restaurants when wanting to eat a poutine.

Poutine is more Canadian base. Very few other countries have actually adapted with the product and have started selling them in their country. Another reason is that they are extremely popular in Canada and restaurants make a lot of money on just that product alone. The reason why international buyers would purchase this product is because its very different from anything theyve ever tried and it meets the standards of many cultures. By purchasing the product from Smokes Poutinerie rather than any other company gives the satisfaction of having a company solely working on Canadian poutines that focuses on having the best, fresh, and healthier product than others.

The product is pretty straight forward. It uses fresh products to create a line of poutine products that will reach the consumers needs. They are all made in the same way, sometimes adding different toppings; therefore it would be very easy to teach employees how to make a poutine.

Generally there arent any skills or specific training that is required in order to sell the product. For the installation of the product one would need the basic knowledge to process, present and deliver the product, as well as the quantity of ingredients that need to be placed in each one. The product is only for consumption, therefore there are no skills in order to use it. In order to maintain the product would be no different than any grocery store where food should be kept at a certain temperature, and in order to service the product no training is necessary.

The company will need to set up a warehouse that can distribute their supplies throughout the country and possibly a sales agent in that country in order to start making sales. Shipping arrangements will also need to be made in order to get some Canadian products that are used in the making of the poutine. The company will also need to set up locations where people can come and buy the product. In these locations grills, fryers, knifes, cartons, and other groceries are needed including employees that have been trained to operate the machines.

There will be an initial need for 20 tons of the ingredients that should be combined. This amount is just to start a test run to see if theres a market for the product. Depending on the demand, later on, more inventory will be needed, but the company can start producing their inventory in Romania instead of exporting ingredients constantly.

There are some restrictions on quotas, for example cheese. Romania is able to import only a certain amount of cheese, however, the amount is large enough to launch a product. As stated above if the demand continues to increase then the company can resort to producing ingredients in Romania. (Chitiu Adrian)

A company is obliged to list all the ingredients they used, as well as state the warning for any allergies and diseases. The only risk of doing so is that more companies can then use the same ingredients and create competition. With that being said there are always secrets in the quantity used to make something taste the way it does therefore the company shouldnt have to worry very much.

Yes it is possible to service the product after being bought. If the company caters then someone would been to service the consumers as well as if they open up restaurants and people order and want it brought to their table a waiter/waitress would need to service it to them. There wouldnt be a need for any warrantees since is an edible product which is made and then eaten.

Pricing

According to the domestic pricing model for Romania (Numbeo), the average monthly disposable salary after taxes is 1,618.92 lei which is $547.33. (Prices in Romania) A full McDonalds meal in Canada is around $7.97, in Romania for the same meal its 18 lei, which is $6.09 therefore having a small difference in the price. A meal at an inexpensive restaurant is around 15.00-21.97 leis which is $6.42-$7.43 Canadian dollars. While most of the products are in the price range making it affordable for Romanians, there might not be an enormous amount of consumers due to the fact that it is more expensive than other fast food places. If the company was able to still make a profit and reduce the price $2 lower then there wouldnt be a question if Romanians can afford it.

There are many factors one must consider when setting prices of a product in a country. The main factor is the cost to make the product, everything that comes with the product as well as exporting it. The average income and economic currency is also a huge factor that decides whether or not one can actually sell their product and make a profit. What other companies (competition) are selling their product for. The cost cant be too low so they company ends up losing money and it cant be too high so that no one would want to buy it. Combining the income and researching the amount a Romanian will pay for a fast food product will result in a good settled price, making profit.

The products arent very sensitive to price changes because they have a low cost of ingredients. The main part of the cost is the human resources and marketing. In Romania, workforce is stable and is not affected by price fluctuations.

It is very important. The price is what creates the market and brings in revenue. It has to be the right amount that will have people wanting to always buy more, not just because of the product itself, but as well as the price that allows them to do so.

Romanian and Canadian corporate taxes are the main additional costs when bringing a product to another country. The transportation costs are also additional costs that can be quite high.

The main transportation routes will be; loading the materials from either Montreal or Toronto in refrigerated containers transported on ships. The product would reach Constanta, one of the largest ports in Europe; from there it has to be transfer by trucks to their destination. In Constanta, the company has the capability to establish a warehouse. Some of the ingredients may be charged with custom fees, equivalent of HST (TVA). (Chitiu Adrian)

Promotional Strategy

Fliers and coupons will be distributed, social media will announce the new product, TV adds can be made, and the traditional word of mouth. On a different aspect they can target investors by one to one meetings to create franchises that will then extend the market.

This company will not need to take part in any trade shows or missions, as the most efficient advertisements in Canada was just by word of mouth.

Language and cultural difference will need to be addressed. There will be language, cultural barriers and different expressions, therefore the slogans will need to be done by a marketing team in Romania in order to reach their market.

Place

The company will be selling directly to the customers from their own fast food restaurants. They will eventually be able to sell from their franchises.

The company wont use specialized outlets to market, however, they use specialized locations where fast food restaurants can be located, and this includes malls, busy streets, tourists areas, and seasonal crowed locations.

Stage 6 Recommendations and Conclusions

I believe that Smokes Poutinerie should sell their products in Romania. There are a variety of reasons why I believe that it would make a great market, starting with the Romanian Culture. For one, Romanians have a tradition in producing and eating a lot of cheese. Two, potatoes are one of the most popular main side dishes. Three, their tradition is to eat all types of meat including pork and bacon. Four, for ages Romanians has had a tradition to preserve their meats by making it smoked. Lastly five, majority of traditional dishes are done with many different sauces. In the Romanian culture all the ingredients that would be in the product are already used, and no one would have an adverse reaction in the idea of such a product, in fact it would be something everyone would go and try as soon as they launched. Another reason that suggests that the company should export their products is that there have already been companies selling similar products in countries in Europe, like the United Kingdom, Germany and France. (Poutine La Banquise) Romania has a very similar culture especially with France; if its a demand in France I believe it will be as well in Romania. When it comes down to being able to export the product, I do realize that the company many have a hard time trying to get everything started, but in the end most international companies do. Yes the costs will be higher and in the first two years the company may not make a significant profit, but taking in consideration that the demand will increase and the company has the access to produce their ingredients in Romania, instead of shipping them overseas and dealing with the quotas, the company will succeed in having a multi-national company and soon enough a worldwide company. The first step is to start selling their product overseas and I truly believe that Romania would be one of the best places to start.

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Population (Romania vs. Canada)Romania (21.8 mil)Canada (34.6 mil)0.630099999999999991

Languages of RomaniaRomanianHungarianRomaUkrainians, Germans, Turks, Russians & Lipovani 0.889000000000000016.5000000000000002E-23.2000000000000001E-21.4E-2