FOREIGN TRADE UNIVERSITY

CAMPUS II, HO CHI MINH CITY

EXECUTIVE SUMMARY

INTERNATIONAL MARKETING ANALYSIS OF

NORTHERN EUROPE (SWEDEN, DENMARK,
NORWAY, FINLAND)

GROUP 4 - K55CLC4

Instructor: Nguyễn Thị Thu Thảo

HOÀNG THY TRÚC NHI 1601015317

NGUYỄN VŨ HOÀNG TẤN 1601015426

HUỲNH PHẠM THỦY TIÊN 1601015508

TRẦN MẠNH TRÍ 1601015543

NGUYỄN KHẮC THANH TÙNG 1601015570


I. PESTLE ANALYSIS OF NORTHERN EUROPE
Politics
- Denmark, Finland, and Sweden are
members of the European Union.
- All countries are of parliamentary
democracy.
- These countries have consistently been
placed at the top of international rankings
in terms of rules of law, protection of
human rights, wealth, innovation, gender
equality, and the quality of public services. positive but that of Norway is negative
Social
- Age distribution is concentrated at
working age group, children group is
relatively low due to low birth rate
- Each country speaks their own languages.
- Northern Europe’s major religion is
Evangelical Lutheran Christianity
Religion, which encourages people to have
serious and community-conscious attitudes
to work and social life.
- Communication style is often direct, open
and “to the point”. They have low power
distance, a more feminine business
environment and are individualists.
- Clothing preferences:
+ Sweden: generally relaxed in the office
environment. Jeans and other casual wear
usually qualify as smart casual with suits - Facebook has the most market share in
only being worn for important meetings.
+ Norway: dress tends towards smart-
casual in Norway. People are expected to
be neat, tidy and well-groomed.
+ Denmark: wear a lot of black, but there
are occasional bursts of colours and
patterns. For instance, there is Danish
brand Ganni with tons of vibrancy in the
clothes
+ Finland: Men tend to wear sports jackets
and trousers in offices and women often
wears trousers
1
Economics
- All Scandinavian countries belong to
High-income countries. Especially, all
countries are in top 20 highest income of
the World.
- Consumer confidence was high in 2018,
but it is lower in 2019
- Retail sales growth year-on-year in 2019
of Sweden, Denmark and Finland is
- Exchange currency rate of VND to Euro is
decline → Vietnamese companies can earn
higher profit margin
- Under the Viet Nam-European Union
trade pact, 95 per cent of the tax line will
be reduced and a free trade zone will be
established
Technology
- Transport networks (TEN-T): Networks
consist of nine European corridors that, by
2030, should unite 94 European ports with
railway and road connections.
- Energy networks (TEN-E): Improve the
cross-border interoperability of the
electricity and gas networks and also boost
renewables.
- Tele-communications networks (eTEN):
Modernising broadband networks and
launching trans-European electronic
services.
- Internet penetration in Northern Europe is
very high (>88%).
- Sweden is leading in number of social
network users with more than 6 million
social network in Sweden with more than
65%.

Legal
- Corporate tax rate in EU is 21.3%
- All products shipped to the European
countries must comply with General
Product Safety Directive
- Textile labelling in the EU is governed
by the Regulation No 1007/2011
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Environment
- Northern Europe are one of the most
sustainable region in the world
- Utilize renewable energy sources and
low carbon emissions
- EU packaging requirements aim at
reducing waste and recycling packaging
materials

II. MARKETING PLAN

1. Segmenting strategy
Segment Haute Ready-to-wear Diffusion Bridge Mass market
Couture (second
young lines)
Price Most High price 2 to 3 times Right value Below the
expensive higher than for money average
average market price
market price
Creativity Maximum High level of Inspired Trendy Basics or
level creativity from ready- fashionable
to-wear items
depending on
BM
Quality Great Attention to Wider Production Importance of
attention to details, volumes of outsourced, costs control
details, industrialization, production right
maximum usually “made delivery in
level of in…” stores
craftsmanship,
Use Special Daily to Casual, Mainly daily Different
occasions important events “sportier” occasions occasions
Target Very few Wider selection Younger Mix of Different
people, of people, audience wholesale targets
celebrities, celebrities, and retail
international international distribution
clients clients
Idea Build the Develop the Expand the Connecting Supply chain
image of the image of brand target the high end management
brand, sell the audience to mass is key. Role
dream market of the store.
Low price and
efficiency.
Companies - Chanel - Ralph Lauren - See - Max&Co - Bershka
- Dior - Laura (Chloe) - Emporio - Zara
- Givenchy Biagiotti - Versus - Armani - H&M
- Ellie Saab - Chanel (Versace) - Diesel - Inditex
- Dior - DKNY - Coach - Mango
- Saint Laurent - Marc - Massimo
(Marc Dutti
Jacobs)
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2. Targeting strategy
Demographic: Young people, middle class and working class
Personality: Modern, energetic, trend-savvy and cost-conscious
Behavior: cares about personal appearance, wants to express their social status
INSIGHT:
Truth: Fashionable clothing makes me trendy and confident in front of people
Tension: Following trends costs me a lot of money, affecting my financial status
Motivation: Self-esteem and economical shopping

3. Positioning strategy
To whom Why need Why believe How different
Young people, Functional benefit: - Large number of - Online shopping
middle class and Fashionable clothing workers, competitive experience
working class and saves money labor prices (lower than - Discounts
who are fashion Emotional benefit: China) - Reasonable policy
conscious Feel confident and - Government support for returning products
and aware of trendy and feel safe policies
price financially - Variety of product
categories
- Vietnamese textile and
garment brand have had a
foothold in the
domestic market.
- The product
performance consistency

III. COMPETITVE STRATEGY AND ENTRY MODE

- Competitive strategy: cost-focus strategy targeted at narrow market (young people who
want fashionable clothes with limited budget)
- Entry mode: Indirect exporting through local retailers. First, company will enter Sweden
market as Sweden has the largest market size, then enter Denmark and Norway and last
enter Finland.
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REFERENCES
1. Ioannis Zachariadis, 2018, Investment in infrastructure in the EU: Gaps, challenges, and
opportunities, [available at: www.iberglobal.com/files/2018-2/infrastructure_eu.pdf ]
2. Robin Wilkinson, 2018, Out of Africa: the facts about EU tariffs on African exports, [available
at: https://fullfact.org/europe/out-africa-facts-about-eu-tariffs-african-exports/]
3. https://tradingeconomics.com/european-union/corporate-tax-rate
4. https://www.nationsonline.org/oneworld/european_languages.htm
5. https://www.nibusinessinfo.co.uk/content/understand-european-marketing-practices
6. https://businessculture.org/northern-europe/
7. Aliamarino, 2016, Fashion Market Segmentation, [available at:
https://fashionthoughtsweb.wordpress.com/2016/11/23/fashion-market-segmentation/]
8. Josep Mestres Domènech, 2017, Infrastructure in the European Union and the Juncker Plan,
[available at: http://www.caixabankresearch.com/node/30801]