A danish outdoor glasshouse provider is looking to expand to a new market. This proposal covers the key considerations for market entry and proposal plus CFS

1. VICA
EXPANSION INTO SWEDISH MARKET

2. Contents
● Background
● Objectives
● STP & Market Mix
● Supply Chain Process
● Swedish Consumer Behaviour
● Macro Environment Analysis
● Financial Highlight
● Proposal for Market Entry
● Critical Success Factors
● Conclusion (SWOT summary)
Source: Google

3. Background overview
Marketing
● Country, city, segments,
marketing
implementation, how ?
Supply Chain
● Make or buy raw
materials?
Investment and control
● Internal, Joint venture,
franchise, merge &
acquire.
Vica A/S SBU & Products Problem Analysis
Established 2004 by Carsten
Piihl and Anders
Christiansen, Victoria
Burles Piihl.
VICA A / S specializes in the
supply of tailor-made
insulated and uninsulated
maintenance-free high
quality materials glass
houses/, greenhouses.
SBUs:
● Vica (Insulated)
● Pavillion Danmark
(Uninsulated)
Products:
● Orangeries
● Conservatories
● Pavilions
Source: VICA

4. Objectives
● Sweden, Stockholm
● SBU - VICA
● Target market & position
● The supply chain
● Investment & control
Research, Analyze and
propose solutions for
Vica A/S market entry.

5. Target
Psychographic, Behavioral, Profile
● Age 40+
● House w/ garden
● Income > 40,000 month SEK
● Family oriented, keen on
gardening, close-to-nature,
lagom concept and wellbeing
enthusiasts.)
● Middle aged (empty nesters
(working /retired)
Segment
Target
Position
STP
● Eco - Conscious
home owners
● Entertaining home
owners
STP
Premium
Quality
Low Quality
Pre-fab
Willab
Garden
Vansta
Tradård
Custom
VICA
Swedish
greenhouse
Source: Principles & practices, D Jobber

6. Eco-conscious nesters Entertainers nesters
Price Premium price
Market penetration pricing
Mid - high price
Offer payment plan
Market penetration pricing
Product Premium quality , Scandic design
Insulated, Total solution offer
All year round use, Custom made
Energy efficient & sustainable, Durable
Place Demo - showroom in large malls
Supply and manufacturing - Poland
Logistics - existing Polish distribution channels
Sub-contract local builders.
Place custom-made orders
Promotion Home-garden magazines, digital marketing, experiential marketing,
Print & media, exhibitions & expo’s,
Outdoor Digital screens, strategic partnerships, Word of mouth.
Customized
Marketing
Mix
Source: VICA.

7. Supply Chain Process

8. Swedish Consumer Behaviour
● Primary determining factors: price, product durability.
● Research: 53% online and 13% in-store.
● Internet retailing reached 6% of global value sales, posting growth of 13% in 2016.
● Different payment options when purchasing online or in-store
● Higher standard of living - high expectations.
● Consumer confidence rose 108.2 points 2017 Consumer lending has been increasing.
● One of the highest purchasing power (10% higher than EU-28 average).
Need outdoor glass
extension / eco
friendly
Which type, Online,
Physical stores,
print media
High quality,
durable, eco-
friendly,
customized.
Accessible,
payment plan, total
solution
Worth it or
not, more
space, light,
all year use,
sustainable
Source: Marketline & Ajzen & Bein

9. Macro Environment Analysis
Source: Marketline & euromonitor

10. Financial Highlight
Source: proff.dk / pwc.com Global FinTech
Key indicators:
• Return on investment: 34.1% (good)
• Liquidity ratio: 171.85% (good)
• Equity ratio: 47% (good)
• Return on equity: 79% (Very good)
• An increase of 41% of profit.
Demand elasticity

11. Proposal For Market Entry
Marketing
● Advertise in Swedish home-garden magazines.
● Adapt the 72 hour cabin model - eco friendly,
wellbeing (commercial & private).
● Create a hype on Digital channels to create
brand awareness of Vica products.
● Experiential product demos in targeted
urbanized areas
● TV Segment features for the products in
lifestyle and wellbeing
● Exhibitions & expo’s for building &
construction, home & garden.
● In-depth market research on competitors
Supply Chain
● Source from Poland due to cheap labour
and raw material.
● Subcontract local contractors with an
existing network in the start.
Investment and control
● Internal investment based on financial
review e.g warehouse
● Merge or acquire - fx. Willab & Garden
Source: Visitsweden, 72hour cabin

12. Critical Success Factors
● Focus on customers & long term brand building for luxury market.
● Continuous innovation of products. & learn to thrive on change.
● Reliability in designing and delivering exclusive products.
● Focus on core competencies.
● A competitive edge gained through a specific niche or skill set.
● Produce the desired end result while minimizing costs.

13. Conclusion
Focus
area
STRENGTHS
•Design patent
•All year use
•Total solution
•Wellbeing & Eco friendly
•Skilled staff
•Durable products
•Members of Trade
Garanti & 5 year
warranty
WEAKNESSES
•Limited financial
resources
•Language barrier
•Business Culture
difference
•Harsh employment
laws
THREATS
•Uncertainty in changing trends
•New government & EU
regulations regulations
•Existing & new competitors
•Bargain power of suppliers &
customers
•High entry costs
•Easy substitution options
•High level of bureaucracy
OPPORTUNITIES
•Poor performing competitors
(Willab & Garden
•Wellness and Eco conscious
trend
•Renewable energy options
•The Nordic model free market.
•High entry costs
•Construction industry growth
- higher than DK & Norway
•Growth in residential segment
2016

14. Thank You!
Source: the 72hour cabin