1. Marketing Plan for
in Switzerland
Preetham Samuel
Tijo Johny
Edita Kodatova
Tsvetelina Toseva
Kevin Elorza

2. Table of Contents
1. Introduction
2. Macroeconomic Environment in Switzerland
3. Microeconomic Environment in Switzerland
4. Market entry strategies
5. Marketing Mix
6. Final Recommendation

3. Introduction
 Viessmann Kältetechnik is one of the leading producers of
refrigeration and clean room technology in Europe
 Viessmann is currently looking to expand it's sales revenues
in Switzerland.
 The merger of Viessmann heating of Viessmann Kältetechnik
will provide many opportunities for Viessmann Kältetechnik.
 The marketing plan for Viessman was developed with the
help of macroeconomic and microeconomic analysis of
Switzerland.

4. MACROECNOMIC ENVIRONMENT
IN
SWITZERLAND

5. Macroeconomic Environment in
Switzerland
PESTEL Analysis
 PESTEL analysis is used as a tool to
analyse a country.
 Based on this information a
company can decide whether they
should enter a market or not.
 PESTEL analysis gives the whole
picture of the environment of a
country.

6. GDP and Development
 The GDP of Switzerland is currently $635.65 billion
 The GDP of Switzerland had contracted by 0.1% in the last quarter
of 2012.
 Between 1980 and 1992 the GDP growth rate has been around
0.42 %
GDP – real growth rate in percent, 1999 – 2011

7. Exports and Imports
 Switzerland exports stand at $190.1 billion
 Switzerland has a trade deficit of $12.9 billion
 Chemical, mechanical and electrical products are currently the
mainstay of Swiss exports.
Export and Import partners of Switzerland
Exports Imports
Germany 20.2% Germany 32.3%
US 10.3% US 10.4%
Italy 7.8% Italy 8.6%
France 7.1% France 5.0%
UK 4.8% UK 4.4%

8. Trade with Germany
 Germany is Switzerland's most important trading partner.
 One – third of Swiss imports come from Germany.
 Bilateral trade currently stands at almost $91 billion.
 Germany regularly posts a trade surplus vis-à-vis Switzerland.
 Switzerland is the fifth largest foreign direct investor for Germany.
 Vice versa Germany is the 6th largest foreign direct investor for
Switzerland.

9. Transport System
 Switzerland has a dense network of railways and a very good road
network.
 There are 4,492 kilometers of rail lines and 71,059 kilometers of
roadways.
 Geneva and Zurich are the major airports and the port of Basel on
the river Rhine is a major trading hub.

10. Technology
 Science and technology in Switzerland play an important role in
economy as very few natural resources are available in the country.
 Switzerland spends 2.9% of the GDP towards R&D.
 The Swiss government supports universities and other public and
private sector organizations for research.

11. Political stability
• Direct democracy
• The Swiss Constitution – legislation for whole country
• All other minor aspect – left up to legislation of cantons
• Minor changes to the Swiss constitution guite often
(main ideas stay the same)

12. Demographics
• Population – 7,8 million
• Most part of population lives in Geneva, Basel, Lausanne and
Bern
• 20% immigrants and resident foreigners
Population of Switzerland from 1960 to 2011

13. Trade Barriers and Restrictions
• Minimal barriers
• High open to foreign trade and investments
• Macroeconomic stability
• Solid monetary stability
• Strong protection of property rights
• The overall tax burden: 30.3%
• The competitive regulatory framework strongly supports commercial activity
• Labor regulations are relatively flexible
• No trade weighted average tariff rate
• Low corruption

14. Inflation
• The average inflation in 2012: -0.71 %
• The inflation from November 2012: -0,3%
Current CPI inflation Switzerland – last 12 months

15. Exchange Rate
• Currency: Swiss franc
• 1EUR/1.2090 CHF

16. MICROECONOMIC ENVIRONMENT
IN
SWITZERLAND

17. Growth Potential in the Swiss Market
 Refrigeration Companies
 Supermarkets
 Restaurants
 Hotels
 Hospitals, clinics and Laboratories

18. Competitors
 Narr (Narr Isoliersysteme GmbH).
 Main competitor in Switzerland.
 Product range is similar to
Viessmann’s.
 Flaws: cold rooms cannot be
completely customized, technology
is not the same - is not as
developed as Viessmann’s.
Other main competitors in
Switzerland are Celltherm, SBS, Misa,
Roma

19. Viessmann vs Competition
 Premium Products
 Quality Guaranteed
 Total customization
 State-of-the-art technology
 Complete after slae service

20. Potential markets
Supermarkets
 ALDI
 LIDL
 MIGROS
 COOP
 Denner
 SPAR
More than 4000+ stores all together

21. Supermarkets Market
Migros+Lidl Others

22. Supermarkets Market
 Migros (1,500+ stores).
 Coop (1990+ stores).
 Aldi (150+ stores).
 Denner (440+ stores).
 Landi (330+ stores).
 Lidl (86+ stores).
 Spar (170+ stores).

23. Other Markets
Refrigeration companies:
Havo Group, Coldstone and Dinba
Hotels:
Hilton, Sheraton, 4 seasons and Marriot Hotel
Restaurants and Cafe's:
McDonald, Burger King, Hard Rock Café and Starbucks
Other companies:
Norvatis (Pharmaceutical), Sika AG (Chemical), Nestlé (Food
processing)

24. Customer Behavior in Switzerland
 Customers in Switzerland require Viessmann products to have
150mm thickness for the wall
 Peak demand is during the summer months
 Customers usually tend to buy a lot during the summer months
 Customers in Switzerland also expect the highest quality for any
product and Viessmann delivers it.

25. Intercultural Aspects
 Switzerland has four official languages, they are German , French ,
Italian and Romansh.
 Swiss people find Germans too unpolite.
 Swiss people view Germans as competition for highly paid jobs.

26. SWOT analysis

27. MARKET ENTRY STRATEGY

28. Forms of Market Entry

29. Forms of Market Entry
Present Situation:
Viessmann Kältetechnik currently directly exports it's products
through Distributors in Switzerland
Suggested Alternative methods:
Joint Venture:
 High return potential
 Access to the distribution network, personal contacts with
suppliers, government officials, special skills etc.
 Control in the activities of the company in the country.

30. Forms of Market Entry
Cooperative exporting:
 Viessmann Kältetechnik can use an existing distribution network of
a partner without forming a joint venture.
 Viessmann Heizung probably could help find a suitable partner in
this case.
Direct Investment:
 Acquire a local refrigeration company
 It involves high investment costs

31. MARKETING STRATEGY

32. Viessmann Relevant Market
functionality
Market segments
technology
RC
Supermarkets
Restaurants and hotels
Pharmaceutical companies
Cooling of goods
Storage of goods
Protection of goods
Safe waste disposal
Hospitals
Refrigeration
SilverProtec®
Anti slip floors
Functionality
All features of the cold room
Technology
Different materials which allow for the
various ways to use the product
Market segments
Customers with rather homogenous
needs and characteristics

33. Porter's Strategy
Competitive
Scope
Broad
target
Narrow
Target
Low Cost Differentiation
Competitive
Advantage
Cost
Leadership
Focus
Differentia
-tion
Cost leadership strategy:
 Company is a low cost producer
in the market
 Uses cheap raw materials and labor
 Economics of scale
 Eg. Misa
Focus strategy:
 Focuses on a particular market
segment
 Products are developed exclusively
for this market.
 A brand loyalty is built among the
clients.

34. Porter's Strategy
Differentiation strategy:
The main aim of this strategy is to differentiate a company from the rest of it's
competitors
Why follow this strategy?
Viessmann must follow this strategy as it's products are mostly costlier than it's
competitors.
Requirements for this strategy
 A good brand name and good product
 Certificates from the government and other institutions
 “Made in Germany”- feeling of exclusivity
 A good after sales service
Missing requirement
 Good sales persons to explain about the benefits of the products

35. Market Positioning
Positioning of Viessmann in the Swiss market:
Price Positioning
ProductValue

36. MARKETING MIX

37. Marketing Mix
 Product: Is an item that satisfies
what a consumer needs
 Place: The possible ways to
provide the customer with the
product
 Price: The amount of money
wanted from customer for the
product
 Promotion: The ways to make
the customers aware of the
product

38. Product
The three levels of a product:
Augmented Product:
Supplementary the non physical
part
of the product
Actual Product:
Tangible, physical product that the
customer can touch and experience.
Core Product:
Intangible, physical product which
the
customer can’t touch

39. Product
Core Product:
The Core part for Viessmann products are
 Cooling
 Storage of items
The core benefit will not change for the Swiss market as the
core benefit cooling is the same as in the Swiss market

40. Product
Actual product:
 Good brand name
 Viessmann products embodies the highest possible
quality.
 Individuality of each product.
 Safe (Siver Protec and Anti Slip floors)
 Good design
 Technologically advanced

41. Product
Augmented Product:
Quick delivery of the products
 Using company's own vehicles
 Using freight forwarders
Good After Sales Service
 This can be done by the company itself.
Warranty
 Warranty period of 5 years should be good enough

42. Place
 Describes the channels of distribution used for supplying a
company's product to the customer.
 There are 2 types of distribution: Direct and Indirect
distribution.
 Viessmann currently sells through indirect distribution.

43. Place
Viessmann Distribution network in Switzerland

44. Place
Changes recommended:
 Viessmann can look to increase it's percentage of sales to with it's
direct customers like supermarkets and hotels.
 Now around 1% to atleast 5%
 Viessmann needs an exclusive distributor of it's products in order to
differentiate itself from the rest of the competition.
 Viessmann can educate it's existing dealers in Switzerland to explain
the advantages their customers are getting by choosing their
products

45. Promotion
Describes tools that can be used for promoting
Viessmann products

46. Corporate Website
Already functioning well but additional language
support can be added

47. Web Content
Event calendar can be included in the website

48. Trade Fairs
Partizipation in the potential trade fairs to display
latest innovation
FBK expo is biggest pastry expo held at Bern,
Switzerland.

49. Trade Fairs
Mefa is the leading Exhibition for meat industry
at Basel Exhibition Center, Switzerland
About 87 exhibitors participated in 2011

50. Trade Fairs
Vitafoods Europe is the only event in the world to
concentrate exclusively on the expanding market for
nutraceuticals, nutricosmetics, functional foods and
drinks ingredients & raw material

51. Magazine Advertisement
MSM le mensuel de l'industrieprops and SMM industriezeitschrift für
die praxis are most popular magazines covering industrial trends.
They have their own youtube channel with about 14,479 videos online and
also a facebook page.

52. Internet Advertising
Viessmann kältetechnik can create a twitter page for better
public connectivity as many consider twitter to be more verified
source.

53. Youtube Advertising
Youtube channel for Viessmann kältetechnik can be created for
event publishing and marketing purposes

54. Television Advertising
It is the oldest and still most effective marketing method
Seasonal advertising of Viessmann kältetechnik products on TV
for familiarity of logo and products

55. Event Sponsoring
Viessmann is alrerady sponsoring many events yet the logo
used for advertisement is Viessmann heizung
The logo of Viessmann kältechnik is not as popular as
Viessmann heizung.

56. Price
Pricing is the process of determining what a company will
receive in exchange for its products
The needs of the consumer can be converted into demand only
if the consumer has the willingness and capacity to buy the
product

57. Marginal Cost Pricing
Marginal-cost pricing the practice of setting the price of a
product to equal the extra cost of producing an extra unit of
output.
Example:
If an item has a marginal cost = $1.00 and normal selling price =
$2.00, the company might wish to lower the price to $1.10 if
demand has waned.

58. Subsidiary Costing
Creating a low-cost product division by either a subsidiary
company or a sub segment of the parent company which offers
low-priced products.

59. Recommendation
 There is still tremendous opportunity for growth in Switzerland
 The current economic crisis in Europe might slowdown demand.
 Hiring good sales persons for the Switzerland market is most
important task for a good sales in Switzerland
 Supermarkets is currently the best bet in Switzerland,
Viessmann must tune it's marketing activities to capture a
significant market share.
 Viessmann must look to increase it's percentage of direct
customers in order to earn more revenue.
 Viessmann must also look for exclusive distributors of it's
products
Viessmann must be willing to make some investments in order
to gain a good market share in Switzerland

60. Thank you