International

marketing
environment
analysis of
Northern Europe
GROUP 4
Agenda

1. General information

2. Economic Environment

3. Cultural Environment

4. Political/Legal Environment

5. Financial Environment

6. Infrastructure

7. Marketing strategies

8. Relevance of Environmental Factors

2
1.
1.
General
Infomation
a.
General location
4
 b. Demographic

Country Denmark Finland Sweden Norway

Population 5,764,980 5,508,214 10,057,698 5,276,968

Population
137 18 25 14
Density

5
6
 2018 Vietnam's export to Scandinavian
countries (mil USD)
1,200

1,000

800

600

400

200

0
Denmark Finland Norway Sweden
Export/Import of goods and services (bil USD)
300
c.
250
243 Trade
223

200 180
157
145
150 132
97 96
100

50

0
Denmark Finland Norway Sweden

Export Import 7
c. Vietnam’s exports to Sweden by category (thousand USD)

8
1.
2.
Economic
Environment
 GNI per capita (2017) (USD)
80,000 76,160

70,000

60,000 55,330
52,270
50,000
44,760

40,000

30,000

20,000

10,000

World GNI
0
Country Ranking Denmark Finland Norway Sweden

Norway 2 a.
Denmark 7 Income

Sweden 10
b. Consumer confidence - Sweden

11
b. Consumer confidence - Denmark

12
b. Consumer confidence - Norway

13
b. Consumer confidence - Finland

14
c. Retail sales growth rate - Sweden

15
c. Retail sales growth rate - Denmark

16
c. Retail sales growth rate - Norway

17
c. Retail sales growth rate - Finland

18
1.
3.
Cultural
Environment
 a. Languages

Country Official and national Other spoken Languages

Languages
Denmark Danish Standard German

Finland Finnish 93.4% small Sami- and Russian-

Swedish 5.9% speaking minorities

Norway Norwegian small Sami- and Finnish-

speaking minorities

Sweden Swedish small Sami- and Finnish-

speaking minorities.

20
b. Religions

21
c. Business culture

Emotions, lively Facts and Punctuality

gestures or technical details Reliability
touching Appreciated
Not welcome

The adoption of Formality of Communication

internet meetings and style
Highest in Europe. respect of Direct, open and “to the
hierarchy point”
Different among
countries
22
c. Business culture

Emotions, lively Communication

gestures or style
touching Direct, open and “to the
point”
Not welcome

The adoption of Punctuality

internet Reliability
Highest in Europe.

Facts and Formality of

technical details meetings and
Appreciated respect of hierarchy
Different among countries
23
d.
Impacts of culture into marketing activities

Research market Translation Online presence

◂ Cultural ◂ Avoid ◂ Language
differences mistranslations ◂ Internet access
◂ Language or negative
connotations ◂ Cultural
barriers differences
◂ Customer ◂ Check brand
name ◂ User testing or
trust work with a local
web design
company

24
d.
Clothing preferences

Denmark Norway
◂ Wear lots of black ◂ Smart casual
◂ Simple, clean, ◂ Neat, tidy, well-
minimal groomed
◂ Wear layers when ◂ Avoid ostentation
it’s cold

Finland Sweden
◂ Sport jackets, ◂ Jeans
trousers ◂ Suit, shirt, tie
◂ Jeans and T-shirt ◂ Black are common
◂ Unpretentious ◂ Well known for
H&M clothing
brand 25
1.
4.
Political/Legal
Environment
a.
General political system
◂ Denmark, Finland, and
Sweden are members of
the European Union
◂ Parliamentary democracy
◂ A region of peace and
stability
“ Denmark, Finland, and Sweden
are members of the European
Union
◂ Vietnamese firms doing
business in Northern Europe
are still applied EU laws
◂ Corporate Tax Rate in European
Union stands at 21.30 percent
28
c. Custom regulations, tariffs

Legal Labelling
Requirements requirements
Product safety Textile labelling in the
regulations outlined in EU is governed by
the General Product the Regulation No
Safety Directive. 1007/2011

Sizing Environment
Vary. When serving the labelling
mainstream market, you Can add any additional
can use the H&M size voluntary labels
guides

Packaging
aim at reducing waste and recycling packaging
materials and is governed by the Directive
94/62/EC on packaging and packaging waste

29
Average tariff
30
1.
5.
Financial
Environment
a. Currency
Sweden
32
a.
Currency
Norway
33
a.
Currency
Denmark
34
a.
Currency
Finland
35
b. Impacts of financial environment
into marketing activities
1. 2. 3.
Northern European Viet Nam-EU trade Agreements on co-
countries have pact operation in economy,
huge demands for ◂ 95% tax line science-technology,
farm and aquatic will be reduced trade, trade
produce ◂ A free trade promotion and
◂ Great potential zone protection, and
aviation
transportation
4. 5.
Northern Europe The market has high
= a gate for requirements of
Vietnamese food safety and
enterprises to quality,
access the EU environmental
market hygiene, and
animal welfare 36
1.
6.
Infrastructure
Logistic infrastructure
The development of the Trans-European Networks (TEN) was established
as a priority in the 1992 Maastricht Treaty

Transport networks Energy networks Tele-

(TEN-T) (TEN-E) communications
Networks consist of nine Improve the cross- networks (eTEN)
European corridors that, border Modernising
by 2030, should unite 94 interoperability of broadband
European ports with the electricity and networks and
railway and road gas networks and launching trans-
connections, 38 key also boost European
airports with train renewables electronic services
connections to the of common interest
major cities, 15,000 in the areas of
kilometres of high- health and public
speed trains and 35 administration.
cross-border projects
38
 % people have access to Internet Number of social network users (mil)
98 97 7 6.6

96 6

94 5
92 3.8
92 4 3.5
3.1
90 89 89 3

88 2

86 1

84 0
Denmark Finland Norway Sweden Denmark Finland Norway Sweden

Market Share of Social Networks in

Sweden (%)
5.94 1.35
6.01

7.86
12.18
65.73

Facebook Pinterest Instagram Youtube Twitter Tumblr

1.
7.
Marketing strategies
 Haute
Couture
& Couture

High End Fashion

Luxury Designer and
Premium Brands

Middle Market
Designer Diffusion Bridge Lines
Affordable Luxury, Retail brands
Middle market retail chains

Mass Market

a. High-street, Multiple retailers

Segmentation
Strategy:
The Fashion Market Value Market
Segmentation Pyramid Value Fashion Retailers, Discounted Retailers
42
Haute Couture
◂ Price: Most Companies
expensive ◂ Chanel
◂ Creativity: Maximum ◂ Dior
level
◂ Quality: Great
◂ Givenchy
attention to details, ◂ Ellie Saab
maximum level of
craftsmanship,
pieces of art
◂ Use: special
occasions
◂ Target: Very few
people, celebrities,
international clients
◂ Idea: Build the image
of the brand, sell the
dream 43
Ready-to-wear
◂ Price: High price Companies
◂ Creativity: High level ◂ Ralph Lauren
of creativity ◂ Laura Biagiotti
◂ Quality: Attention to ◂ Chanel
details,
industrialization, ◂ Dior
usually “made in…” ◂ Saint Laurent
◂ Use: daily to
important events
◂ Target: Wider
selection of people,
celebrities,
international clients
◂ Idea: Develop the
image of brand

44
Diffusion or second young lines
◂ Price: Priced 3 to 2 Companies
times higher than ◂ See for Chloe
the market price
◂ Creativity: Inspired
◂ Versus for Versace
from ready-to-wear ◂ DKNY for Donna
Karan
◂ Quality: Wider
volumes of ◂ Marc for Marc Jacobs
production
◂ Use: Casual, “sportier”
◂ Target: Younger
audience
◂ Idea: Expand the
target audience

45
Bridge
◂ Price: Right value for Companies
money ◂ Max&Co
◂ Creativity: Trendy ◂ Emporio Armani
◂ Quality: Production ◂ Diesel
outsourced, right
delivery in stores ◂ Coach
◂ Use: Mainly daily ◂ Massimo Dutti
occasions
◂ Target: Mix of
wholesale and retail
distribution, both
international and
local brands
◂ Idea: Connecting the
high end to mass
market
46
Mass market
◂ Price: Below the Companies
average market price ◂ Bershka
◂ Creativity: Basics or ◂ Zara
fashionable items
depending on BM ◂ H&M
◂ Quality: Importance ◂ Inditex
of costs control ◂ Mango
◂ Use: Different
occasions
◂ Target: Different
targets
◂ Idea: Supply chain
management is key.
Role of the store. Low
price and efficiency.

47
b.
Targeting Strategy: Mass market

Demographic Personality Behavior

Young people, Modern, energetic, Cares about
middle class and trend-savvy and personal
working class cost-conscious appearance,
wants to express
their social status

48
Insight

Truth Tension Motivation

Fashionable Following trends Self-esteem and
clothing makes costs me a lot of economical
me trendy and money, affecting shopping
confident in front my financial status
of people

49
 c.
Positioning Strategy

To whom Why believe Why different

◂ Young people ◂ Large number of ◂ Online shopping
◂ Middle class workers, competitive experience
labor prices ◂ Discounts
◂ Working class
◂ Government support
who are fashion conscious policies
◂ Reasonable policy
and aware of price for returning
◂ Variety of product products
Why need categories
◂ Functional benefit: ◂ Vietnamese textile and
Fashionable clothing garment brand has also
and saves money had a foothold in the
domestic market
◂ Emotional benefit:
Feel confident and ◂ The product
trendy and feel safe performance
financially consistency 50
1.
8.
Relevance of
Environmental Factors
 Entry into
Entry into Finland
Entry into Denmark
Sweden & Norway
Thanks for
listening
Any questions?

53