KEY FINDINGS OF QUALITATIVE RESEARCH ABOUT HEDA 1 Prepared by MRB February 2014

KEY FINDINGS OF QUALITATIVE RESEARCH ABOUT

HEDA

1

Prepared by MRB February 2014

TABLE OF CONTENTS

1. INTRODUCTION1.1 THE RESEARCH OBJECTIVES

1.2THE RESEARCH METHODOLOGY1.3 TIME PLAN

2. SYNTHESIS OF FINDINGS2.1 THE BUSINESS ENVIRONMENT OF CRETE

2.2 STANCE TOWARDS NATIONAL & BILATERAL CHAMBERS2.3 EVALUATION OF THE DUTCH MARKET

2.4 INTRODUCTION & EVALUATION OF HEDA

3. 3. CONCLUSIONS & RECOMMENDED ACTIONSCONCLUSIONS & RECOMMENDED ACTIONS

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1. INTRODUCTION

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1.1 THE RESEARCH OBJECTIVES

To evaluate the business environment of Cretan island

To examine the stance of business owners towards cooperatives associations, national and bilateral chambers

To evaluate the participation of business to associations and chambers, to identify the advantages and disadvantages and also the expectations rising by those memberships

To examine the levels of knowledge and the stance towards the Dutch Market

To introduce HEDA and to examine if there is any possibility and under which condition HEDA could acquire new members from the business environment of Crete

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1.2 THE RESEARCH METHODOLOGY

Qualitative Research

11 in depth interviews with the Decision makers of medium and large companies of Crete

The selection criterion was among the main economic sectors of the island

• Tourism

• Agriculture

• Manufacturing (Processing Industry)

• Commerce

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1.3 THE TIME PLAN

The research field was held among

January 13th to January 31 /2014

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2. SYNTHESIS OF FINDINGS

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2.1 THE BUSINESS ENVIRONMENT OF CRETE

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The main economic sectors of the island are depicted hierarchically as following :

Primary Sector (exports mainly)

Manufacturing / (Processing Industry)

Tourism

Shipping

Commerce


The economic situation seems to affect the business activity of the island, since it was difficult to identify industrial sectors that are booming nowadays

Furthermore, an additional difficulty exists concerning transportation and labor costs (being higher) compared with the rest of Greece and as a result many companies have second thoughts about the stay of the company’s headquarters to the island (example Manufacturing / Processing Industry)

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As far as it concerns tourism, the situation is a bit different (better) but all inclusive packages -which seem to be a recent trend -do not bring profitability to the island as a whole ( tourists does not leave profit to the local market)

Concerning the primary sector (mainly agriculture, olive oil, vineyards) only export activities can bring profit to the producers

Furthermore the Cretans believe that they should promote the philosophy and the advantages of the Cretan diet abroad in order to expand the entrepreneurship of the island -> need for expansion abroad <-> “Arising Opportunity”

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2.2 STANCE TOWARDS NATIONAL & BILATERAL CHAMBERS

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Typologies Map

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In an effort to recognize the ways that the respondents are associated with the concept “member of a chamber” the following behavioral “poles” emerged:

• Obligatory membership vs Beyond obligatory membership

• Show trust vs Question

Obligatory Membership

Doubt

Beyond obligatory membership

Trust

The Supporters

The detached

The Distant


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The Supporters

Usually large companies with export activities

Mainly from the food industry (olive oil, wine, honey) dealing with production – packaging - distribution- exports

Aim to expand their business activities -> Seek for opportunities

They are young, “experts” with technology, “the model of dynamic businessman”

They are active members of Local unions, Commercial chambers and Bilateral chambers

Easy to reach but they need proof in order to be persuaded


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The Supporters

Perceived Benefits of Membership

Local Unions Collectivity Defending local interests Emphasis to Cretan

entrepreneurship

National chambers Credentials for the company Continuous information reports

about the sector in general Information about events Results of researches about the

latest trends in commerce, sales etc Contributes to the promotion of

Cretan philosophy abroad

Bilateral chambers They bring into contact with embassies They organize exhibitions with Greek

and foreign partners They provide statistics about sales and

profit of specific products in certain regions

They provide information about the market in order companies who want to export their product can be competitive

They inform about new market openings

They build up the image of Cretan Market


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The Supporters


Local Unions Collectivity Defending local interests Emphasis to Cretan

entrepreneurship

National chambers Credentials for the company Continuous information reports

about the sector in general Information about events Results of researches about the

latest trends in commerce, sales etc Contributes to the promotion of

Cretan philosophy abroad

Bilateral chambers They bring into contact with embassies They organize exhibitions with Greek

and foreign partners They provide statistics about sales and

profit of specific products in certain regions

They provide information about the market in order companies who want to export their product can be competitive

They inform about new market openings

They build up the image of Cretan Market


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The Supporters

Further Expectations from the Membership of a bilateral chamber

Networking with foreign partners in an organized and systematic way in order to acquire information about the specific market and to exchange expertise and know-how

Guidance on bureaucracy and legal issues of the country that they want to export their products

Planning of Events to reinforce public relations among countries

Well organized exhibitions

Finding potential Customers

“Interaction”

“Better”

“Deeper”


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The Distant

Usually large and medium companies with low or without export activities

Mainly producers ( primary sector) and from the tourist sector (hotel owners)

Wish to expand their business activities -> “Wait to be discovered”

They are usually of middle age, familiar with technology, “the model of traditional businessman”

They are members of Local unions and Commercial chambers ( they are negative)

Suspicious, Demanding, it is difficult to persuade them


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The Distant


Local Unions Politics - Unionism They mishandle subventions Ignorance about marketing, events,

promotion

National chambers They organize events without any

important effect (producers and merchants together)

They could consist the mean to promote the Cretan products but in reality they are ineffective

They are public servants

Bilateral chambers They feel that they promote interest of

each country They organize events and excursions They provide public relations among

countries

The specific audience is

particularly negative towards

unions and chambers, as a result

they found difficulties to

recognize any benefits


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The Distant

More Expectations from the Membership of a bilateral chamber


Acquaintance with Top Businessman of European countries

Organization of Exhibitions

“Sales, Sales, Sales”


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The Detached

Large companies with export activities

Mainly from the food industry and production (olive oil, honey, cold cuts) dealing with production – packaging - distribution- exports

Aim to expand their business activities -> They have strategic plan

They are of middle age , experienced, familiar with technology, “the model of successful businessman”

They are members of Local unions, Commercial chambers and Bilateral chambers (they are disappointed)

Difficult to gain trust

“I can manage even without you”


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The Detached


Local Unions Promote local interests It is a mean of positioning in certain issues &

express problems and worries Participation at events But usually without any effect

National chambers They provide information about the market,

new equipments etc. They organize events exhibitions An official organization BUT They could eliminate the bureaucracy of

public administration

Bilateral chambers The intermediate link between two

countries They organize events and exhibitions They provide information about

foreign marketsBUT

• They usually do not give solutions but they send you to other services -> lack of interest

• They emphasize to the relations between member states without providing substantial help -> companies should ask for consulting from specific firms


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The Detached

More Expectations from the Membership of a bilateral chamber

Guidance about the Legislative framework

Market research about the product the company wants to export at the specific country -> to identify the need

Opening of new markets


Networking with relevant business in order to exchange opinions, experience and knowledge

Real “…Beyond…”


Overall all respondents seemed to have a better opinion about Bilateral chambers in relation to national ones, fact that increases expectations but also “leaves room” for further approach

It was common in all respondents that, the “role” a bilateral chamber has to play in order to fulfill its “mission”, is mainly Consultative

The most important selection criterion seems to be its capability to provide new Market Opportunities and Potential Customers

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2.3 EVALUATION OF THE DUTCH MARKET

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The majority of respondents seemed to consider interesting all European markets as well as Scandinavian countries, Russia, Canada and China

Due to climatic conditions they have, European and Scandinavian countries are open markets to export wine, honey and olive oil

Canada and Russia are particularly interested about wine and China seems to be a great opportunity for olive oil due to lack of it there

On the contrary Markets of Latin America, Africa and India do not show any particular interest since they are considered non-developing markets

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With few exceptions, most businesses do not know many details about the Dutch market-> low levels of awareness

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Spontaneous Associations

“A Dynamic Market”

“Strong economy”

“A well organized country” “A node due to

geographical place”


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After the exposure to the information about the Dutch market, seemed that the positive image they had about the Dutch Market is confirmed, indicating the

following elements that are evaluated positively:

Agriculture and food -> Open market for Crete/ Opportunity

The 5th largest economy in the Euro zone -> Safety / strengthens the impression of

strong economy

Import partners: Germany 14.5%, China 11.8%, Belgium 8.6%, UK 6.1%, Russia 6%, US 5.9%, France 4% (2011) -> Reassurance / impression of an open market/ A potential cooperation

Imports $490.1 billion (2012 est.) -> Important factor that motivates interest for furthermore

examination


It seems that after the presentation of the Dutch Market the respondents expressed high interest

Especially for the food sector, wine, olive oil, cold cuts and honey the Dutch market is depicted as a new opening and a potential future cooperation

The fact that the Dutch Market has a high import activity raises positive connotations and gives the impression that there is a “fertile ground” to expand

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On a first spontaneous level, the majority of respondents were not aware of HEDA (only two mentions without knowing any

specific details)

In order to examine prompted reactions, the respondents were exposed to informational material about HEDA that included

the history, objectives and values, its mission and vision, as well as services provided and list of members

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Preliminary Remark


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Many years of existence are interpreted twofold: o Experience / know – howo Absence of visibility raises suspicion -> unknown therefore inefficient?

The objectives considered prerequisites and expected -> lack of differentiation / “missal”Values are “tempting” and generate interest as long as they are applicable However words like “Passion”, “daring” and integrity predispose positively


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The term Networking Organization raises positive connotations and meets the expectations they have already mentionBusiness to Business contacts is evaluated positively since it gives the impression that HEDA brings together business in order to exchange opinions and knowledge The number of 180 members seems quite satisfactory for an unknown chamber-> “hidden force”The term strong liaison seems to respond to their current need

All the above compose the puzzle of acceptance of HEDA


Customized services: Quarterly newsletterMonthly e-News BulletinCredit information Exhibitions Training Organizing activitiesCooperation with other chambers WebsiteBusiness directoryNetworking

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Evaluation of services

Lack of differentiation from other chambers“ The basics offered by everyone”Lack of excitementLost of interest

Need of differentiation/ enrichment


When respondents were exposed to a more detailed description about specific actions of HEDA their initial reaction about services

seemed to be altered

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Getting acquainted with the Dutch Market (profile, developed sectors, products/

services, consumer habits)

Providing detailed information for the Dutch Market will make easy and clear if there is an open market/ opportunity for each sector that shows interest to develop business or exporting activity

!!!


35

Networking with other companies

If it is well organized and it is not just promises, it is great opportunity in order to “exploit” (make the best) other partner’s experience, technical mastery and

superior skills -> Fact that attributes added value to HEDA

!!!


36

Join ventures with Dutch companies

Came out as a great opportunity for specific companies (ex. Cold cuts) they could combine the production of Dutch primary sector in order to develop new business activities or to create alliances with other companies in order to supply materials from

each other -> An ideal action from a chamber that provides the maximum to its members !!!


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Lists of potential customers/ collaborations

The greatest difficulty for a company that wants to expand their activities abroad, a chamber that would provide this service to its members is more than an organization, it is a commission that shows social

responsibility towards its members -> It is the most important argument that HEDA can use in order to gain members !!!


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Public Relations/Political Lobbying

A service that companies may afford in order to acquire power. The specific service is evaluated positively and transforms HEDA to a powerful

institution -> “They have the means”

!!!


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Mentoring: A platform of information that will guide all members through

necessary actions in order to carry the entrepreneurial activity abroad

GuidanceElimination of bureaucracyElimination of the cost of consulting companiesConvenience

“Not just a chamber, a precious consultant” !!!


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Events that will attract Dutch Companies or tourists (gastronomic events)

Necessary It will “boost” island’s economyIt will promote Cretan nutrition abroadIt will create needs for Cretan products

“A significant help”

!!!


The specific actions after evaluating were placed in the following hierarchy:

Events that will attract Dutch Companies or tourists (gastronomic events)

Mentoring: A platform of information that will guide all members through necessary actions in order to carry the

entrepreneurial activity abroad

Join ventures with Dutch companies

Lists of potential customers/ collaborations

Networking with other companies

Public Relations/Political Lobbying

Getting acquainted with the Dutch Market (profile, developed sectors, products/ services, consumer habits)


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The following diagram depicts the willing of each type of audience to be a member of HEDA and which subscription they would like to pay:

Member (+)

Right to vote (220€)

Member (-)

Simple subscription

(75€)

The SupportersThe detached

The Distant


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The following diagram depicts the willing of each type of audience to be a member of HEDA and which subscription they would like to pay:

Member (+)

Right to vote (220€)

Member (-)

Simple subscription

(75€)

The SupportersThe detached

The Distant

If HEDA can prove those which claims even “the Distant” audience seems to be attracted

“The supporters” felt so excited about the services that HEDA provides, that they would like to be more engaged than the other audiences

“The detached” seemed to be more skeptical about all the services that HEDA claims to provide but they are willing to give an opportunity to the Hellenic-Dutch chamber

3. CONCLUSIONS & RECOMMENDED ACTIONS

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The Cretan Market seems to be quite active as far as it concerns exporting activities and wishes to make further openings to new Markets

So far the participation in chambers and associations was almost disappointing, except from the audience of “the supporters” who have rather a positive experience

For the rest audiences the role of the Chambers and unions is not very active and does not provide neither an advisory status nor effective solutions

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Bilateral chambers do not seem to particularly differentiate with an exception the audience of “the supporters” who still have greater expectations

The competencies that required by a Bilateral chamber are the following

Networking with foreign partnersGuidance on bureaucracy and legal issuesReinforcement of public relations among countriesWell organized exhibitionsFinding potential customers

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As far as it concerns the Dutch Market seems quite interesting, especially for the food sector (production, packaging, Distribution)

Although the majority of respondents had a good opinion about the Netherlands and they consider them a strong economy, still it is an unknown market

After exposing the audience to informative material about the Dutch Market / economy, the levels of interest increased

A new and interesting opening

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HEDA does not have high levels of awareness among

respondents, even those business that were aware about the

existence of the Hellenic- Dutch chamber could not recall any

further information about its actions

After exposing respondents to the informational material

about HEDA their reactions were quite satisfactory, yet there

is still the concern / suspicion about the actual realization of

the activities and services HEDA is claiming -> Need to

prove its values and intentions48


In order HEDA to acquire “Recognition” and acceptance

should promote/ communicate its “history”, actions and

“concrete” partnerships -> Communication of a success story

HEDA should reach Cretan businesses through informative

news letters by emphasizing to all its “strong weapons” that

will give companies motives to subscribe

To indicate its values and vision49


“Not just a chamber …

a Precious Consultant”

But

“PROVE IT !!!”

Documents

KEY FINDINGS OF QUALITATIVE RESEARCH ABOUT HEDA 1 Prepared by MRB February 2014