(Market analysis; demographics, needs, trends, growth, buyer behavior, customer segments, competition, collaborators, macroeconomic forces)
At the moment Kummius.fi is implementation phase on progress in Finland. That’s why we thought that the opportunity to adapt it to the neighboring countries should also be considered. We recognized the same lack of service in a similar culture to Finland, in Sweden. People in the Nordic Countries are somewhat similar regarding the culture, especially because of sharing the same historical background, religion and weather conditions.
In order to access the Swedish markets, we need to find trustworthy local collaborators and do some market research in advance. So let’s take a look closer what is Sweden like!
Sweden is located in the middle of the Nordic Countries with a population of 9.5 million people. Just like in Finland, the distances are rather long in Sweden. Sweden is actually the third-largest country in Europe by area. People spend time at home especially during winter months, and because of the long distances, they need to plan ahead when and where to go.
The Swedish population is aging and people get fewer children that they used to. That is why we can claim that children and the time spend together becomes even more important in everyday busy life. People will want to spend quality time with close people. With less time available people need new services like Kummius.fi to helps them.
The history of religion is rather similar in the Nordic Countries. Lutheranism became Swedish official religion in the 1500th century. Later, in 2000 the Church of Sweden was separated from the state and Sweden ceased to have any official church. At the end of 2012, 67.5% of Swedes belonged to the Church of Sweden (Lutheran religion). The number has been decreasing during last two decades, even though church weddings and rates of baptism are increasing in Sweden and religion continues to play a role in cultural identity. Still, approximately only 2% of the church’s members attend regularly Sunday services. Thus, we think that people are willing to find alternative ways to church services and continue the cultural traditions after a birth of a child.
Economic forces, market needs and trends
Swedish market is a highly developed economy. Today services play the biggest structural part of the whole economic functions. In 2011, 48% of Swedish total value adding became from services. Industry had 21% and trade 15% of the total value added in Sweden.
There are a lot of highly educated people in Sweden and the number keeps on growing. The population is becoming more clever, educated and can check at any time things from Internet. People are aware of marketing tactics and as consumers their understanding is broader towards buying behavior and marketing. That is why today’s marketing is getting more sophisticated. Swedish appreciate local values. Actually, locality is one of today’s trends in Sweden. In addition, multiculturalism and different minorities, e.g. gays and feminists have a trendy positioning in Sweden. Under these consumer behavior circumstances Kummius.fi would have its gap in the Swedish market.
Competitors in Sweden
- City webpages and visit Sweden-pages, specially ”TO DO”-sites e.g. http://www.goteborg.com/ and http://destinationjonkoping.se/en.html and http://www.visitsweden.com/sweden/things-to-do/with-kids/
- Tourist agencies platforms
- A platform tourist guide for families travelling with children: http://www.sverigeresor.se/tema/barn-familj
- Barnsemester.se is the largest travel site in Sweden focusing on families with children aged 0-17. The web page presents family vacations possibilities, tours with family, family activities and other fun activities or holiday tips for holiday with children. Suppliers announcing prices vary from 7 000 kr to 25 000 kr (700-3000 euros). http://www.barnsemester.se/
Customer segments and collaboration in the Swedish market
- Service offers like:
- Amusement parks, e.g. Liseberg
- Zoos and other resorts, e.g. Kolmården and Astrid Lingren’s House
- Children friendly cafes and restaurants
- Sport offers like:
- Horseback riding
- Pools and swimming places e.g. spas and outdoor pools, e.g. Brunstorps Gård in Husqvarna
- Skiing places, e.g. Isaberg or Åre
- Sights like:
- Churches and special historical sights e.g. Brahehus castle ruins in Gränna
- Events like:
- Christmas markets like Gothenburg Liseberg
- Halloween costume parties and meetings
Global Marketing Management lecture slides 18.11.2013