Swedish Golf Market example essay topic

INTERNATIONAL MARKETING GROUP PAPER Table of Content Section page Executive Summary 3 Introduction 4 Mission statement 6 Consumers' analysis 6 Target market 7 Consumers' characteristics 8 Market demography 8 Target market by cities 9 External Analysis of Sweden / Infrastructure 9 Business-Related Infrastructure 10 Consumer-Oriented Infrastructure 10 Economy's analysis 10 Technical and Transportation Infrastructure 11 Political and Legal 12 Natural Resource Market Performance 12 Cultural 13 Social Environment 13 Competitive Analysis 13 Marketing Strategy 15 Marketing Mix 15-19 Product Place Promotion Price (see financial attachment) Executive summary In 1984, Fantastic Golf Company was created in Tampa, Florida in order to manufacture and distribute high-quality, affordable golf clubs and equipment. Fantastic uses the same successful business model as high-end golf balls companies like Callaway, Titleist and Taylor Made. Design and assembly of fantastic clubs occurs at the Tampa facility. Like its high-end competitors, the company uses the latest golf club technology to create products with ultimate playability. But, fantastic provides its retailers with a mid-range price point and the best sales margins in the golf industry. The end result is a comparably high-quality, high-performance golf ball with a more attractive price tag.

In January 2004, Fantastic Golf Company expanded its market to Sweden. By using the same business model like our home market, we were able to conquer a multi-billion dollar industry that is showing a growth in popularity in Sweden. The company continues to produce golf balls that emphasize excellent value and outstanding performance. The geographic focus of Fantastic Golf has been very successful in the Southern and eastern portions of Sweden and our product line are golf balls Introduction The product that we have chosen to produce and sell is golf balls. We will produce a top of the line golf ball that will travel further than the average ball. Our goal is to produce a top of the line golf ball, which is created by cutting edge technology that will last longer and travel further than the average golf ball.

The name of our golf balls is 2 Long. Our balls will be sold per sleeve (3 to a sleeve), per dozen and per case. The country that we have chosen to market our product in is Sweden. Sweden was largely unknown as a golfing destination many years ago but, thanks to a number of reasons, has turned the corner from its underachiever status to world-beater.

Annika Sorenstam put Swedish and ladies golf on the map when she became the first woman in more than 50 years to feature in a PGA Tour event against the men in the Bank of America Colonial. But it doesn't stop there, add Ulrik Johansson and Jesper Parnevik from the men's game to Ca trin Nils mark and Carin Koch from the ladies game, and you have a country that has produced more than its fair share of talented golfers. Golfing in Sweden is both a pleasure and an eye opener. The first Swedish golf club, Gothenburg, was founded in 1902 and was quickly followed two years later by Stockholm. Golf, then, is nothing new to the Swedes and any visitors will soon realize that.

Also, this past year the Sweden Women's World Amateur Team won the Championship by three over Canada and the United States. Golf has become incredibly popular over the last 10 years in Sweden. New golf courses are built in large numbers and there are as many as 365 in the whole country today. Most located in the southern area, but the interested player will have no problem finding great courses all the way up the Arctic Circle. Golf is a popular sport, and it does not cost that much to be an active golfer.

Sweden, the fifth largest country in Europe, with less than 9 million inhabitants has a rich history filled with unique twists and contradictions. Sweden is the most "American" of European Union members; however that does not mean that Swedish market replicates that in the United States. Assuming that it does, often leads to problems for American exporters. Sweden is unquestionably attractive to foreign investors, offering a well-educated highly efficient work force, outstanding management skills and the second lowest corporate tax rate in Europe. The number of foreign owned companies increased more than 40% between 1990 and 1997. Foreign owned businesses employ over 14% of the Swedish work force.

The United States is second only to Finland as the largest provider of foreign direct investment. The number of American invested companies in Sweden has grown from 350 to over 600 in the past 7 years. Cumulative foreign direct investment has increased more in Sweden than any other European country. Numerous surveys rank Sweden among the top three countries that provide the best climate for innovation in the world. Among the factors considered are investments in R&D (4% of Swedish GDP), number of patents, and the percentage of industry that is classified high tech. Sweden and the United States are the leading IT nations in the world in terms of IT hardware, software, and services.

Sweden has the highest number of phone lines (fixed and mobile) per capita as well as the highest percentage of Internet users in the world. Over 50% of those that have Internet connections use it daily. Over 35% have purchased something on the Internet within the past 3 months. A recent World Economic Forum study ranked Swedish managers as the best in the world in terms of international experience and language skills. Travel for business and pleasure is the largest industry in Sweden and seems well developed to withstand changes in economic conditions. Sweden is a great place for Americans to do business.

American made products are highly regarded and well received. The following is an opinion on how golf will progress in the next seven years in Europe. The United States is a top down strategy. Golf started in the States as an elite sport and thanks in part to the arrival of Arnold Palmer in the middle 1960's gradually evolved into the Volk sport it is today.

There are presently 27 million golfers in the USA. Most members of the European Union excluding Great Britain and Ireland have unknowingly implemented a top down strategy. Sweden has been the most successful in utilizing the top down concept by, in part, developing the finest youth programs in the world. Today six percent of Swedes are golfers. Mission statement To provide superior quality golf balls equipments and thereby unsurpassed value and customer satisfaction. Consumers' analysis The population of Sweden is Approximately 8.9 million.

Swedes in general are keen on sports, and are not hesitate to pay for quality equipment of well-known brands. Golf accounts for the biggest imports to Sweden of all sports. In Sweden, Golf is a multi-billion dollar industry that is showing a growth in popularity due to media attention on rising young stars of the sport. Because of the large market, which exists, there is strong competition between golf equipment makers to get their products sold. One of the equipment that is needed to play is golf ball.

The Swedish golf market is large. Golf is a leisure / lifestyle choice that many Swedish enjoy. Fantastic Golf Ball Inc considers itself in the entertainment business, providing golf balls for all golfers. This market can be split into segments according to a number of criteria: level of expertise, demography and geography. Target audience Golf in Sweden is very popular and has enjoyed a 72% increase in the number of golf courses built during the 1990's. it has also come onto the golfing world stage with some world class golfers, such as Annika and Jesper Parnevik.

Professional golfers spend times and money in a golf course to master the skill needed to compete. They are an important segment because they only make up 15 percent of the adult Swedish golfer, but account for 50 percent of total spending on golf. This segments is usually sport stars, hey are very value-oriented, they prefer golf balls with brand recognition and good quality. Sweden has achieved an enviable standard of living under a mixed system of high-tech capitalism and extensive welfare benefits. The country level of household income is $26,800 (2004 EST. ).

Consequently, golf, like any other sports is a part of their cultural lifestyle. Amateur golfers are the leading consumers in the market. Similar to U. S, in Sweden this segment considers golf as a social gathering between family, colleagues, and friends. Most businessmen acquire their businesses deals through playing golf with their clients and their colleagues. Golf is becoming a sport not only for businessmen, but also a game for families and the wide public. Theses group will also value the quality golf balls that our company is selling.

Maximum efforts, value oriented, non-price sensitive, intending to buy, and exciting lifestyles. Market demography Sweden Golfers: Male = 71.4% Female = 28.6% Average Age = 40 (Male = 41; female = 39) between ages 25 - 54 = 67.4% University educated = 45.8% Average Household Income = $26,800 Household size = 60% more than 3 members; 43% with children under 18. Habits of the typical Swedish Golfer: 75% watch television daily 83% listen to radio daily 61% read the newspaper daily Top 5 viewing preferences - 76.3% sports in general; 72% current events; 72% movies 75% of golfers who watch sport will watch golf on a regular basis The teen market is very large and perhaps the second largest consumer in the sport market. This group is very influence by the American culture. They are usually the university students who play golf with their friends for fun, or school athletes. They perceived American brands as high quality and very expensive.

They are willing and able to spend top dollars on golf equipments, especially golf balls. In addition to this market demography, one of the most important groups we will target are the over fifty year plus or senior market. Golfers over fifty play more than half of all rounds annually, they play more often than their younger generation. This is a strong indication that they have both the time and the disposable income to play golf more frequently. In Sweden, this target is growing slowing; but has financial stability. Target market by cities: Top 5 preference cities are: Stockholm is 60% of customer with current population of 1,239,100 (2004 EST.

). Goterborg is 25% of target markets and the population is approximately 503,700. The remaining of target consumers locate in Malmo which has potential consumer's spending power and population of 244,000; Uppsala's population is 126,400 of people, and Vaster as 100,300. External Analysis of Sweden / Infrastructure Fantastic Golf Ball mindsets about starting a new business in Southern Sweden assumes "that a sufficient and grow-stimulating regional and inter regional infrastructure, which fits regional needs and is of good quality, aids local economic development through a general reduction of costs, an increase of the potential for prosperous future development and the improvement of the quality of life in the region. "Infrastructure" is assessed here looking through four aspects: transportation infrastructure, business-oriented infrastructure, consumer-oriented infrastructure, and tourism-related infrastructure.

Furthermore, it is important to consider the impact of (regional) policy on the provision of infrastructure. According to Fantastic Golf's marketing and research department by means of interviews, infrastructure (mostly transport and communication) is the second most important factor that deserves more investments in the future, coming only after human resources. Business-Related Infrastructure Business-related infrastructure is important since it fosters regional growth by cost reducing effects and provides attractive locations for new investment. Business-related infrastructure is composed of essentials used by business (such as industrial parks, technology parks, business districts, R&D infrastructure) or which has a special relevance for locational decision or cost structure of business (such as energy / water supply, wastes treatment, telecommunications. Consumer-Oriented Infrastructure well-developed consumer-oriented infrastructure improves the quality of like in a region, here analyzed by supply and accessibility to basic services (stores, post offices, pharmacy and schools). While this can be seen as a form of regional success in its own light, it can also be seen as a location factor.

This type of basic infrastructure contributed to the attractiveness of a region for new investments by providing a certain level of life quality for the entrepreneur and employees, as well as inhabitants of the region in general. Analysis of The Economy Economic structure and organization deals with how economic activities, production process and enterprises are organized and how they interact. Economic structure and organization influences employment opportunities / constrains for the local population and the prevailing trends. The analysis of economic structures and organization provides insights into the following: the structure and evolution of employment by sectors and branches (clusters) of economic activities; the mix of branches diversification's / specialization and inter sectoral relationships (linkages) in the local economy; the structure and evolution of enterprises (sizes, branches-origin, ownership, degree of integration local nation, international (markets), and the social formation of production. Technical and Transportation Infrastructure In terms of technological parts, the regional universities constitute important actors together with local businesses in creating economic dynamism. One example is Umea University that has made a large investment in information technology in the Umea Centre for Interaction Technology (UCT I).

This is a multi-disciplinary research center focusing on interaction between human, information and computers. Researcher form various areas cooperate to solve problems of transition from the industrial to the information society. Several municipalities, including the LWPN's, are actively trying to attract investments in these new areas that are often concentrate in large regional centers, where a more complete business-related infrastructure exists. Transport infrastructure has a special importance when dealing with a peripheral region as Southern Sweden.

This is true since "transportation infrastructure" has a cost reducing or output increasing impact on the economic activities and therefore improves the attractiveness and economic performance of a region. In general terms the region is relatively well served of transport infrastructure. Political and Legal In Sweden, regional policy and policy directed to rural areas is traditionally strongly interlinked. Regional policy was introduced as "localization policy" in the mid-60's aiming to increase economic effectiveness by improving regional balance in the country. This was done by state subsidies, which should stimulate industrial investments in the large sparsely populated areas of Southern Sweden, which were hit by structural change and depopulation.

Additionally, the idea of equal living conditions all over the country and the to live and work wherever one wants are connected to this policy (Norberg, 1999, p. 85-89). During the following decades the state obtained a strong position in the Swedish setting, allowing redistributing 53 percent of the income differences in the mid-80's, which had a positive spatial effect providing an almost equal income in remote rural areas as well as in city regions in the end of the 89's (West holm, 1999). Within the past years, considerable changes occurred, which had an impact on the role of Swedish state. An important aspect was Sweden's decision to enter the EU, which demanded adjustments by the institutional setting, for instance, to fulfill the requirements of EU regional policy (Naringsdepartementet, 2000). Natural Resource Market Performance Priorities on environmental protection and bio-diversity have increased environmental regulations and have affected natural resources uses and practices (protected areas, agro-environmental practices, environmental impact assessment of investments).

However, regardless the study area, protection of natural areas is not perceived by Fantastic Golf Ball as factor that limit economic development in the region. CulturalMulticulturality in rural areas is perceived either as a potential resource that might contribute to the economic development, or as a burden for the hosting society. It is the opinion of Fantastic Golf Ball that areas that are able to take advantage of being a multicultural community tend to be economically better off. An important point to make here is the fact the "culture" in a strict meaning and "willingness to build networks's hold be strongly related to economic performance, not in the collective sense, rather in the individual one. Social Environment " Culture" subsumes here local traditions, identity, values and beliefs, attitudes, religion, history and leadership as well as political beliefs and allegiances. All these aspect are expected to influence indirectly economic performance.

Competitive Analysis There are several existing competitors in the Golf Industry in Sweden. The major competitors that we will be competing with are mostly American companies. Companies such as Tite list, Callaway, Wilson, Taylor Made, Nike, Top Flite, Pinnacle, Dunlop, Slazenger, and Spalding are going to be our most fierce competitors. Because these companies are already established and have strong brand identities we will be investing in an intense R&D study. We will be evaluating these companies to see how the customers in Sweden have accepted them or rejected them and for what reasons. We will be conducting surveys and interviews to find out what the consumers are looking for.

The key to success of the globally standardized products is not that they are especially cheap or that every consumer wants the same thing as everyone else. They are often the best value products because they offer higher quality and more advanced features at better prices. They also tend to be stronger on the intangible extras such as status and brand image. But mostly they embody the best in technology with designs from leading markets and are manufactured to the highest standards. As much as they satisfy customers, they as often create new desires. In terms of the product life cycle, global products will often generate new growth in mature markets, as customers return sooner for upgrades and more modern features.

Such products need to be global because they achieve success by being tested against the world's most demanding customers wherever they may be. They also need to be standardized so that they can be offered at competitive prices and become core players in these leading markets. But the explanation behind their success is not their global or standardized aspects as such, but that they are the best buys in the core segments of the various country markets. In global product markets, the firm needs to develop technological capabilities to be able to compete by introducing new products.

As the speed of technological development has increased, intense competitive rivalries have led to a proliferation of new products in many markets, many of them "me-too" variants from lead markets. This reinforces competitive rivalry further. Rather than uniqueness and differentiation, which place a premium on superior segmentation and positioning strategies, the key for success is speed and flexibility in new product development and a well known and highly regarded global brand. In order to produce high levels of satisfaction, the customer needs to be given something not so obviously expected, something for which the "surprise" quotient is high. In mature countries with mature markets and intense global competition, customers' expectations continue to rise, and they demand even higher quality products and improved service, at competitive prices. This is a stiff management challenge, which must be met for the local marketer to be successful in today's mature markets.

Some of the techniques that we plan on implementing to cope with our competitors are as follows: First, we plan on negotiating contracts for spokespeople such as Annika Sorenstam, Ulrik Johansson, Jesper Parnevik and the Women's World Amateur Team. With strong links to the roots of Sweden we feel this will give us a strong competitive advantage. Our second technique is to have our Sweden based facility run by Swedish employees. Sweden's workforce is proven to be well educated, highly efficient, experienced in almost all modern technologies, and have outstanding management skills. Also, Swedish managers are the best in the world in terms of international experience and language skills. We feel that this expertise will help our business flourish in the Sweden market.

Two other venues that we will research and possibly pursue are joint ventures / licensing, finding an agent / partner that is already established and knows the system. We feel that we would be able to benefit tremendously through one of these avenues, but we need to do some further research to see what companies share the same values, beliefs, and mission as us. Marketing Strategy Standardization verse AdaptationProductThe Fantastic 2 Long ball will feature a soft compression, high velocity core and a soft Surly n blend cover. This combination provides lower driver spin for longer distance off the tee. The very low spin also helps golfers to minimize unintentional hook and slice side spin for straighter distance.

Unlike many other low spin distance golf balls, the Fantastic 2 Long still provides soft feel on all shots tee to green. Specifications: Construction Core Composition Core Type 2 piece thin cover / large core Poly butadiene Solid Core Core Diameter Core Composition Cover Thickness 1.585" Medium Soft lon omer 0.0475"Cover Hardness Dimple Shape Dimple Coverage 70 Shore D Circular High Total Number of Dimples Ball Compression 386 90 PGA Types: o Fantastic 2 Long - Super Feel Fantastic 2 Long - Super Longo Fantastic 2 Long - Super Spin Fantastic 2 Long - Super Straight Customer Service: o Our customer service department will consist of a shipping calculator, shipping and order fulfillment, Pricing Policy, Return & Exchange, and International Orders. o Shipping Calculator - This form will calculate approximate shipping for items selected from our web site based on your zip code. o In-Stock Orders - If received by 10: 00 a.m. during store hours will ship the same business day. Our shopping cart sends an instant order confirmation by Email. If you do not receive an Email confirmation within 24 hours please contact us so we can be sure your Email address is correct in our system. o Drop-Ship Orders - Will be sent directly from the manufacturer. In the event of a back order we will contact you with and expected delivery date before finalizing your order. o Order Tracking - In-stock orders shipped by UPS will generate a tracking number sent to you by Email when the order is picked up.

You " ll be able to track your order online using this number. o Signature Required for Delivery - Is our standard delivery method, and we strongly encourage all customers to have someone sign for delivery. If you choose "no signature required", delivery is at your own risk - we will not be responsible for loss, theft or damage. o Our Return Policy - The customer is responsible for shipping charges on all returns and exchanges, and some special order styles have a restock fee. Packaging: We will use lenticular and holographic images on packaging. These special effects on packaging grab the attention of consumers in the store aisle. These can also be used to convey the brand's values and positioning. By doing so, these special visual effects become integral to the brand.

They also become part of the brand equity over time. We will have a radiating design that conveys two product attributes - spin control and longer distance. The name will appear in metallic foil. It will be a very bright and eye-catching package.

Branding: Our balls will be branded with just our "2 Long" logo. Distribution Methods (place) To get the products to the consumers in the most efficient way, the company will establish its own distribution center already up in Stockholm. Our distribution methods will include: retailers, wholesalers, and though e-commerce. Open retail stores in densely populated cities. Specifically, o Stockholm Goteborg o Malmo Another way the company will distribute golf balls to the consumers is through wholesalers.

They are golf clubs, hotels, small businesses, which accounts 50 percent our businesses. These groups purchase golf balls in large quantities for their clubs, hotels, and other businesses to resell them to their customers at a higher price. As already mentioned, the Swedes are non-price sensitive, they are willing and able to buy our brand products at a premium price. E-commerce has become a large part of the 'new economy'. Endless opportunities arise from the interaction and growth of the. com to communicate and nurture commerce with developing and maintaining relationships with customers.

There is plenty of opportunity for growth over the Internet, and our company is taking advantage on that. Fantastic ball. com sells the same products on the web site as we do in the retail stores, providing the users more ways of getting what they want. The prices of golf balls sold at fantastic ball. com are comparable to those sold by our retail partners, so as not to take away sales and revenues from their traditional channel partners. Promotion-The Advertising and publicity necessary to complete a transaction Perhaps the most versatile of the marketing Ps is promotion. It covers all phases of communication between the seller and the potential customer. It is versatile because a change in budget, media or target audience can be made quickly.

Promotions also can be effectively changed for specific market segment efforts. Major promotional concerns include the following: o Budge to Timing Distribution of promotional efforts 1. Advertising 2. Promotion 3. Publicity Promotion strategy 1. Benefit approach Product point Benefit 2.

Media Newspaper Shopper so Television Radio Billboard so Direct Mail Magazines

Bibliography

web web web html / countries /Countries 5/Sweden / Country web report. htm Johansson, Johny K., Global Marketing: Foreign Entry, Local Marketing, & Global Management, Third Edition, Georgetown University, 2003 web html / countries /Countries 5/Sweden / Country.