Marketing golfball in sweeden Essay

This essay has a total of 4299 words and 26 pages.

marketing golfball in sweeden

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 Catrin Nilsmark 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 Volksport 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 1990s.it has also come onto the golfing world stage with some
world class golfers, such as Annika sorenstam 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.

Consumers' characteristics
GEOGRAPHIC Region
City size


Density Southeast, west, south
Stockholm =1,239,100; Goterborg =503,700; Malmo= 244, 000;
Urban; suburban; Rural
DEMOGRAPHIC











SOCIOECONOMIC




BUYING BEHABIOR Gender
Age structure







Household size


Income




Involvement
Male; female
0-14 years: 17.5% (male 807,193; female 762,882)
15-64 years: 65.2% (male 2,974,107; female 2,886,840)
65 years and over: 17.3% (male 668,719; female 886,659) (2004 est.)
4 or more, own home; rent

Under $15,000; $15,000-$24,999; $25,000-$34,999;
$35,000-$49,999; $50,000-$74,999; $75,000 and over.

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 Vasteras 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 interregional 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.
Continues for 13 more pages >>




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