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TRANSCRIPT
April 2016, Riga
Veranika Parmon
Kristoffer Ryelund Nielsen
Sven Magnus Skimmeland
Merylin Poks
Pall Halldor Georgsson
Pirita Laamanen
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Table of Contents
Introduction ...................................................................................................................................... 3
Methodology .................................................................................................................................... 4
Analysis ............................................................................................................................................ 5
Finland ......................................................................................................................................... 5
PESTEL analysis ...................................................................................................................... 5
Porter’s Five Forces .................................................................................................................. 6
Estonia ......................................................................................................................................... 8
PESTEL analysis ...................................................................................................................... 8
Porter’s Five Forces ................................................................................................................ 10
Denmark .................................................................................................................................... 11
PEST analysis ......................................................................................................................... 11
Porters Five Forces ................................................................................................................. 12
Decision making matrix ................................................................................................................. 13
Suggestions for the company ......................................................................................................... 15
Implementation ............................................................................................................................... 15
Conclusions .................................................................................................................................... 17
References ...................................................................................................................................... 18
Appendixes ..................................................................................................................................... 22
Appendix A: Interview transcript ............................................................................................... 22
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Introduction In today’s economies, businesses are expected to implement business ethics in their
operations. As a result of that, there is an increased awareness of environmental issues as well as
rising concern of what impact business can have on the physical environment (Fassin, Van
Rossem, & Buelens, 2011).
In the following report the company Ricberry will be analyzed. Ricberry is one of the
fastest growing Latvian company and specializes in production of dry-fruit candies as well as
berry syrups and sauces. The company started in 2012 as family business and by the end of 2015
reached 200 000 EUR turnover, which is forecasted to triple in 2016 according to Edgar Vilums,
CEO of the company. Ricberry focuses on delivering healthy, 100% berry product with no
preservatives, low levels of sugar and high nutrition. The company differentiates from rivals by
using own low heat technology, which is not typical for the industry. Ricberry sees its mission in
delivering healthy and tasty products. Currently the company is looking for ways to expand into
European Union, Eastern Europe and China with one of its main products (Edgar Vilums, 2016).
In order to provide the analysis for three countries we identify five parameters related to
business ethics. To support the debate PESTEL and Porter five forces tools will be conducted.
Problem statement
This report aims to answer next research question: “To which country should Ricberry
export and why in case of expansion?”. In order to answer this question we provide analysis on
business ethics and other chosen factors for three countries: Denmark, Estonia and Finland. Each
of those countries has its own mix of factors that influence consumer’s choice, and therefore, the
purpose of our work is to inform the managers of Ricberry of what advantages and challenges
they may meet when they choose to expand to other countries.
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Methodology Through this research, we use several methods and theories in order to provide analysis
and, consequently, suggestions that potentially can be useful to the company. We use secondary
data based on online research, and framework that included in the course of business, ethics and
entrepreneurship. Ideally, we would like to interview focus groups or conduct a market analysis
for the specific product in each country; however, due to the lack of resources and time, we had
to focus on trends and statistics based on secondary data. In this paper, we use models and theory
for our analysis in order to get full overview of today's market situation. We organize this
external knowledge into a comparison matrix, and compare each country individually based on
chosen parameters. This comparison ends up with suggestions regarding which country has the
best potential based on chosen parameters, and can be used as a framework for Ricberry.
Porter's Five Forces (PFF)
PFF is defined as “a framework for assessing and evaluating the competitive strength and
position of a business organization or industry” (CGMA, 2013). This model includes supplier
power, buyer power, competitive rivalry, threat of substitutes and threat of new entry.
PESTEL analysis
PESTEL analysis is defined as “an acronym for Political, Economic, Social,
Technological, Environmental and Legal factors - Which is used to analyze external factors in
relations to companies or a market place” (Pestleanalysis, n.d.). This analysis is used to assess
these six external factors in relation to companies’ situations.
Comparison Decision Making Matrix (CDMM)
A Comparison Decision Making Matrix is defined as “a matrix which evaluates possible
alternatives to a course of action” (WebFinance, n.d.). Chosen alternatives are mentioned in the
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top of the matrix, comparison measurements are on the left side and weighting with a range from
1 to 5 are in the second column.
Greenwashing (GW)
Greenwashing is defined as “a coordinated attempt to hide unpleasant facts, especially in
a environmental context” (Greenwashing Index, n.d.). The company is considered to do
“greenwashing” when it alleges in its marketing or promotion that it is environmentally friendly,
but in reality it does not fulfill this through implementations and action. In the matter of this
report, we focused on what and how customers interfere with greenwashing as an issue.
Analysis Finland PESTEL analysis
Pestel –analysis is now conducted for further description of Finland within political,
economic, social, technological, environmental and legal aspects in brief. Estonia and Denmark
will be analyzed by the same analysis tool later in the paper.
Politics
Finland is a republican country with The Parliament of Finland, the President of the
Republic and the Finnish Government operating as the highest organs in the administration.
Moreover, Finland is a member of the European Union (EU), and located in the northern Europe
with Sweden, Russia, Norway and Estonia as its neighboring countries. The currency of the
country is euro.
Economy
Currently, the employment rate in Finland is 66,7 % and the unemployment rate is 9,4 %.
In comparison to last year (2015), the economy has recovered slightly. The consumer price index
has been increasing little by little since 1951. However, there are signs of a decrease when
comparing previous years, 2014 and 2015. In addition, the current inflation rate is estimated to be
-0,0 % (Tilastokeskus, 2016).
Social
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The population of Finland is about 5,5 million inhabitants (Infopankki, n.d.). The amount
of births has decreased during the past five years. According to statistics, 1,65 was an average
number for births per woman in 2015 and 1,71 in 2014 (Tilastokeskus, 2016). The official
languages spoken in the country are Finnish and Swedish. Approximately 5% of Finns speak
Swedish as their native language. Many Finns also speak English.
Technology
Finland aims to put a lot of effort on R & D, which has increased the productivity among
Finnish companies. In 2005, the country was ranked as first for technology index amongst
European Union, which reflects the country’s technological readiness (Nationmaster.com, n.d.).
Environment
The surface of Finland is 338 432 square kilometers. This includes the land and inland
water areas. The capital of Finland is Helsinki, which is located in the southern Finland. There
are approximately 317 self-governed municipalities (Infopankki, n.d.).Environmentalism is taken
seriously in Finland. According to Lyytimäki, Finland has been rated as one of the leading
countries protecting environment. Finnish administration and legislation has had an effective
impact on this (ThisisFINLAND, n.d.).
Legal
Every inhabitant has certain rights and obligations according to Finnish Law. Foreigners,
who accommodate in Finland, have almost the same rights and obligations with some exceptions.
Furthermore, every inhabitant is entitled to be treated equally. Discrimination is considered as a
crime (Infopankki 2016).
Porter’s Five Forces
As Finland is considered as one of the new possible market areas for Ricberry, the
potentiality of Finnish market is now analyzed by Porter’s five forces. Estonia and Denmark will
be analyzed later in the paper.
When it comes to snack industry, an ideal snack for Finns is healthy, nutritious, easy to
consume and tasty (RAISIO, n.d.). Ricberry’s products might have potential in Finland, because
they fulfill these requirements. Also, Finns, especially children, tend to get too much energy from
the snacks between meals (Ruokatieto, n.d.).
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Competitive Rivalry – HIGH
In Finland, there are several companies operating in the “snack industry”, such as Arla
Ingman, Fazer, Raisio Oyj, Vaasan and Valio. Besides other products, they provide various types
of snacks for Finnish consumers. In comparison of annual turnovers in 2009, Valio (EUR 1 787
million) and Fazer (EUR 1 160 million) for example have proved their strong position in the
market (Food for life Finland, n.d.).
Threat of New Entry – LOW
Finnish supermarkets have a wide selection of snacks, which are usually consumed in
between meals. Besides Finnish brands, such as Valio and Elovena, supermarkets offer brands of
their own, which are usually cheaper than very well-known brands. Therefore, it is difficult for
new companies to enter the market.
Threat of Substitution – HIGH
It is a common habit in Finland to have something with protein and fiber for a snack
(Ruokatieto, n.d.). Ricberry’s products do not contain as much as one would need (Ricberry,
n.d.). Typical snacks Finns consume are rye bread, fruit and different types of yogurts and curds.
Also, protein and cereal bars, quick-porridges and biscuits are consumed as well. Rye bread was
estimated to be the most popular snack in 2012 (Pfizer Oy, 2012).
Bargaining Power of Suppliers – MEDIUM
When it comes to importing, Finnish customs have certain regulations of what is allowed
to import. According to the Import Price Index statistics, the import of food commodities has
decreased -1, 0% during the past year (Statistics Finland, n.d.). Also, the Finnish food safety
agency Evira inspects food products to meet certain safety and health standards.
There are three dominating retail store chains in Finland: Kesko (32, 7%), S-kanava (45,
9%) and Lidl Suomi KY (9, 0%) (PTY, n.d.). When it comes to the aspect of retailing of
Ricberry’s berry snacks, Kesko and S-kanava would probably provide better opportunities.
Bargaining Power of Customers – LOW
Considering Ricberry’s berry snacks, the demand varies. One of the current trends in
Finland is fitness and health, which means that Ricberry’s products might have opportunities.
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However, another trend is to buy locally produced food. This is an obstacle, because the company
uses Latvian berries in their products. Also, most of Finns prefer domestic over foreign products
in order to avoid unhealthy preservatives and to support local producers. Approximately 60% of
the population is interested in the origins of food in general, and around 75% insure the origins of
milk and meat products. Furthermore, the share for domestic food consumed in Finland is
estimated to be 75-80% (Helsingin Sanomat, n.d.). Therefore, it is challenging for the company
to educate Finnish consumers to choose a foreign product.
Also, the price for the berry snacks of Ricberry might increase due to the Finnish taxation
policy (VAT). This might be an issue, because new foreign products with high prices do not
usually succeed in Finland.
All in all, there are little market opportunities for the company in Finland. The Finnish
consumption habit rarely allows foreign products to succeed. However, such snacks as pure fruit
bars do not exist in Finland, and if Ricberry decides to expand in Finland further research is
recommended.
Estonia
PESTEL analysis
Politics
The political situation in Estonia has been stable since 1992, when the constitution of
Estonia came into force, and the power has been held by one party for the last 10 years. The Head
of the State is the President; executive power is exercised by the Government (Study and
Mapping of Estonian Creative Economy, 2011). The Republic of Estonia is a member state of
European Union since 2004 and has had the euro currency since 2011 (Estonia.eu, 2016).
Economics
In 2014 the employment rate of population aged 18 until pension age was 73,3% and
unemployment rate 7,6%. In comparison with the last years, the employment rate is slightly
increasing and unemployment decreasing (Statistical Office of Estonia, 2016).
The consumer prices has been decreasing in total since 2011. In March of 2016 it rose
0,5% in food and non-alcoholic beverages and increased 1,7% in health products which shows
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great change in medical care prices as it has appeared also in previous years. According to
Trading Economics the Inflation Rate is reported to be -0,2%, and the Consumer Price Index CPI
195,20 index points (Trading Economics, 2016).
Estonia has a trade deficit of 139,70 million in February of 2016 which is smaller gap
than year before with 150,51 million. Although the trade deficit has decreased, the imports have
grown by 5% year-on-year and purchases rose the most for electrical equipment and mineral
products (Trading Economics, 2016). Latvia is the fourth most important partner in trade with
8,5% of total import to Estonia. The import of oilcakes have been increased since 2013 by 6,2%
but the export has increased even more with 322% in 2014 (the last data) (Statistical Office of
Estonia, 2016).
Social
The population of Estonia is approximately 1,3 million inhabitants and 31,5% of citizens
live in the capital. In Estonia live inhabitants with different ethnic background: 69% of Estonians,
26% of Russians and 5% of other ethnical background. Latvian nation is not very decisive part
among the population with 0,14% of inhabitants but it is important to mention that 36% of them
live in the capital and 19% of them in Valga (Statistical Office of Estonia, 2016).
According to the Statistical Office of Estonia there were 203 471 women aged between
and 39 in 2015 which is 17,6% of population and the number of the selected population is
decreasing (Statistical Office of Estonia, 2016).
Technology
Estonia has considered access to the Internet a basic human right as 98% of the country
has Internet coverage (Estonian Ministry of foreign affairs, 2016). It is common that people
purchase products via Internet and sign their documents with ID card. Scientists and students
cooperate to find more efficient and beneficial solutions in production which has led companies
to use technologies in food processing to retain more nutritional value.
Environmental
The area of Estonia is 45 227 square kilometers. The capital city of Estonia is Tallinn,
located in the northern coast of Estonia. The country has 15 counties, 33 towns and 194 rural
municipalities (Estonian Ministry of foreign affairs, 2016).
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Legacy
Every inhabitant has rights and obligations according to Estonian Constitution and Laws.
The legal system is based primarily on the German model with in the field of civil law. General
principles and norms of international law and directly applicable rules of European Union law
form an integral part of national legal system (Estonia.eu, 2016).
Porter’s Five Forces
Competitive Rivalry- HIGH
Snack industry has various selection of food that can be divided into healthy and not so
healthy products. As the domestic products play great role in the industry, there have been
brought out some of the healthy snack companies: Vägi, Amoor, Good Mood Food, Must
Küüslauk, Gurmeeklubi, Põhjaka Mõis, Pädaste Mõis, Allew Magusameister, SirLoin.
Threat of New Entry -MEDIUM
As the market of snack industry is difficult to define in case of Ricberry’s berry candy, the
customers’ receptivity is not clear. To give confident assertation, more research is needed. Based
on the authors experience we can give hypothetical assumption that it is difficult to entry the
market that has historically established trends in consumption of domestic products. As
consumers have the experience with familiar products, it is difficult but possible to entry to the
market.
Threat of Substitution - MEDIUM
Snack industry in Estonia has great variability and the substitutes are available. To
prevent the substitution it is necessary to keep the price low and competitive. People with higher
incomes tend to eat more meat and fruit, whereas people with lower incomes consume more grain
products, in particular bread (European Commission, 2015).
Bargaining Power of Suppliers - HIGH
Handmade gourmet is common in supermarkets, organic stores and gourmet boutiques.
The suppliers range from local and foreign producers. The most comparable product in snack
industry is Ampstükk (Amoor OÜ) which fruit bars have been prepared without added sugar and
any kind of heat treatment, which has been preserved in all of vitamins and flavor nuances
(Uusen, 2014).
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The most growing trend is to purchase food products from acquaintances or via reliable
internet forums in case of good quality-price rate and to contribute into local organic industry
(All, 2016). As the awareness of greenwashing is growing, customers are looking for reliable
certificates but still purchase products in case these have proved themselves in the market.
"People are becoming more aware of food quality and organic product expanding pool of buyers.
“I sincerely believe that the idea of "Estonia as an eco state" is absolutely real," said Margit
Kimmel who is the founder of Ampstükk (Kruuse, 2014).
Bargaining Power of Customers - HIGH
The demand of customers vary between sex, age and purchase power of customers. The
trend in Estonia supports the import of Ricberry products.
The price of a product is often crucial, when a product is purchased which means that the
company should not raise the price very much. According to the last data of average monthly
gross wage the annual purchase power is 13 261€ which is the highest level in Estonia’s history
(Trading Economics, 2016). Despite the increased purchase power, people still are not ready to
consume proportionally more. Margit Kimmel said that "it is important to keep the prices
reasonable, the organic goods would be available and would not be considered just a hobby of the
rich. “There is room for many more, of course, but I believe that organic trade is the future.”
(Kruuse, 2014).
Denmark
PEST analysis
Political factors
Since the constitution was signed in 1849 Denmark has been a democracy, and has a very
sustainable political system (Aarhus Universitet, n.d.). The politicians have intense focus on the
Danish food industry, and in 2015 there was made plenty of new rules about how to conserve,
store, and label food. This means that companies, for example, have to make more detailed
description of what the product contains. Many of the regulations also come from the European
Union (Teknologisk Institut, 2014).
Economic factors
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In Denmark there is an overall growth. In 2015 three markets that were growing the most
are research and development (198%), beverage industry (67%) and electricity and gas supply
industry (37%) (Finans, 2015). The inflation rate is currently at 1,3% and the Consumer Price
Index (CPI) is at 100,60 indexpoints (Trading economics, n.d.).
Social
The population in Denmark is 5,7 million, and, if we take into account the target group of
Ricberry, threre are 689,081 women of the age of 18 – 40 (Statiskbank, n.d.).
The official language is Danish, but everyone studies English in school for at least of 5
years. Also German is mandatory in most of Danish schools. According to Confederation of
Danish Enterprise, three of the most important things for the Danish consumer are: 1) focus on
experience, 2) focus on price and 3) focus on health and well-being. This means that the modern
consumers want to signal that they are healthy, energized and in control, even though 1,3 million
adults are overweight. This becomes a community problem (Dansk Erhverv, n.d.). It seems that
both, consumers and retailstores, have growing interest in accurate and credible information
about the food. Therefore, regulation and certification are very important for Denmark (Doc
player, n.d.).
Technology
In Denmark the technology is in focus, especially because the internet is taking over. For
example, one of three people buy food online (Foodculture.dk, 2013).
Porters Five Forces
Competitive Rivalry - MEDIUM
In Denmark there is an endless number of different energy and proteinbars, and also fruit
bars from “Castus” intented to put in kids lunchbox, and also the sports version for adults. The
trend in Denmark right now is that everything have to be healthy, and reflect that you have
control in your everyday life.
Threads of New Entry – HIGH
In this industry there is a high risk of new competitors. Everyone can start mixing their
own berries and start selling it, you do not need any expert knowledge or huge capital to start,
and therefore the barriers of entry are very small.
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Threat of Substitution - HIGH
There are substitute products in the snack industry in Denmark, Ricberry’s products can
be substituted by all the training supplement, or all the different kinds of candy. That is why they
have to differentiate, and be very clear about what they are and want to be in order to penetrate
the Danish marked.
Bargaining Power of Suppliers - MEDIUM
There is some dominating retail store chains in Denmark, for example “Coop Danmark”
and “Dansk Supermarked”. If Ricberry’s want to go all in, in Denmark they have to get solid
suppliers.
The suppliers that make Ricberry product do not necessarily have to be changed in order
to go to Danish market. However, the problem may arise, if Ricberry‘s suppliers will not be able
to keep up with the huge amount of bars they have to produce in order to work with one of giant
Danish retail store chains in Denmark, that combined have a turnover of 13,2 billion EUR every
year (Proff, n.d.).
Bargaining Power of Customers: - HIGH
Women in Denmark have an average income of 294.000 Kr a year, equal to 39508 EUR.
Overall in Denmark there is an increasing interest in organic food. Around 93% of the Danish
people buy organic food.Women buy organic food more often than men, and 3 out of 4 would
purchase more organic foods if they were cheaper (lf.dk, 2015).
Decision making matrix By using the decision making matrix method it is possible to evaluate how Ricberry
should enter the markets in the three countries. Using this method can help managers of
companies to take important decisions in making a strategy (Businessballs, 2015). In table X the
parameters that we have chosen can be seen. It should be noted that all the analysis is based on
our subjective evaluations.
From the given number Ricberry can see which country have higher chance to succeed in
an international expansion. The highest number has the best circumstances to succeed, and
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smaller numbers suggest that the company has to differentiate its business compared to its current
situation. In the parameter grade, 5 means that there are many competitors, and 1 means there is
little competition.
Parameter Weight Estonia Denmark Finland
Certifications: is it
normal to have
certifications in the
country
1-5 3 - very normal and
needed for customers.
2 - customers
want to know
everything about
the product.
2 - customers want to
be aware of what
they buy.
Customer
expectations: how
open are the
customers for new
products?
1-5 3 - customers are open
to new products, if
they are oopen relate
to the customer
segment
2 - customers are
open to new
products, if they
are open relate to
the customer
segment
2 - most of
customers buy only
certain products,
which they know
well
Economic:
What is the power of
the buyers? (CPI)
1-5 3 - average income is
13.261€ per year.
CPI 195.20
indexpoints.
4 - average income
is 39.508€ per
year.
CPI is 100.60
indexpoints.
4 - average income
is 42.456€ per year.
CPI is 100.1
indexpoints
Greenwashing: how
important is
authenticity in the
country?
1-5 2 - authenticity and
experience plays great
roll in marketing.
2 - authenticity is
important do to the
fact that 93% of
the population
buys organic food
once in a while.
2 - authenticity is
very important for
most consumers
Competition: how
many competitors is
there in the country?
1-5 1 - lots of similar
domestic products
1 - there is a lot
of competitors
related to energy
and protinbars
1 - wide selection of
domestic substitute
products (snacks)
Total: 5-25 12 11 11
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Results from the decision making matrix analysis show that Estonia scored the highest
total of 12 points. Therefore, according to our analysis this market would be the most preferable
for Ricberry to enter.
Suggestions for the company According to the PEST –analysis, Porter’s five forces and Decision making matrix of
each country, Estonia is the most potential option for expansion. First, Estonia and Latvia are
neighboring countries, which facilitates issues regarding exporting and their costs. Latvia is the
fourth most important partner in import to Estonia, which gives an advantage for additional
export. Second, the economy is slowly recovering, which can be seen in the PEST –analysis: the
employment rate is slightly rising and unemployment rate dropping. Third, the population of
Estonia consists of inhabitants from different ethnic backgrounds: there are, for example,
Latvians living in Estonia, of whom most are residents of the capital city. Different ethnical
backgrounds might create more openness for foreign products.
Implementation This chapter will describe an implementation plan for Ricberry to expand its business in
Estonia and to enter Estonian market. The plan is divided into three parts, short-, mid- and long-
term, all of which describe recommended actions for the company. Short-term implementation
plan consists of matters to take into consideration within the first six months. Mid-term plan, in
turn, describes the actions after short-term , after the first 6 months to one year. Long-term plan
considers long term actions, which would take place after the first year to the second year.
Short-term
In order to fully understand Estonian market and its consumer behavior, further market
research is recommended. Furthermore, it is advisable for the company to study certain important
matters such as trade barriers and custom regulations as it will facilitate the exportation process.
Also, Ricberry should come up with a plan on how to actually implement the market entry:
choosing an entry mode.
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Once the plan is made, it is time for risk and financial analyses. Risk analysis is useful for
the prevention of possible risks. Financial analysis, in return, helps the company to identify its
resources as well as to consider funding issues. A clear sketch of how to use money and time
should be drawn.
Another matter to consider for further research is competitors. There might also be
possible partners, which would provide market security at least for the beginning of expansion.
As for marketing, creating a story for the company and its products is recommended in
order to arouse interest among Estonian consumers. Storytelling would promote the brand itself
as well as healthy lifestyle, which would also raise the awareness in the current market as well.
Also, according to the Porter’s five forces analysis of Estonian market, it is important to maintain
the prices relatively low in order to prevent substitution. Reliability and availability of the
product for new customers is another matter to consider in the very beginning of planning.
According to our experiences of visiting Ricberry’s website, it is necessary to have
information for the customers and partners available in English language as well. Also, more user
friendly interface is recommended in case of further expansions and customers as an example.
Mid-term
The company should start planning further steps according to the market entry plan made
during the short term implementation plan. This part includes financial, funding and resource
planning, recruitment planning and risk prevention planning. Also, the entry mode should be
chosen. When all of the matters above have been taken into deeper consideration, the
implementation of the entry plan can begin. Situations and markets change, and therefore it is
important to be aware of the changes, too. Therefore, there must be constant concentration and
supervision on all the matters mentioned above.
Long-term
When it comes to long-term planning, the market entry plan is in action. What needs to be
done at this point, depends on the outcome of previous operations done during the mid-term
planning.
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Conclusions According to our research the Latvian company Ricberry’s first export country would be
Estonia in case of expanding to North European countries. Estonia provides great opportunities
for the company. There are many similar products that exist, which suggests that the healthy,
natural products are in high demand. Moreover, Estonia has steadily growing economy and big
ethnical diversity, which creates beneficial environment for the export. Estonian costumer has
medium purchasing power and recent trends show that more and more people, especially women,
prefer natural and healthy products when it comes to buying food. Moreover, average Estonian
costumer is considered to be open to trying new products; in the long term, however, quality and
reliability becomes a strong choosing factor.
In order to be competitive on Estonian or any other market, Ricberry needs to create an
experience for customers. Storytelling can be crucial if the company wants to differentiate and
stand out in the market. Estonian consumers, according to our research, tend to choose domestic
products over imported one. On the other hand, due to close geographical situation and cultural
connections between Estonia and Latvia, there is high acceptance in Estonia, for Latvian
products.
From ethical perspective, awareness regarding greenwashing is rising in Estonia.
Costumers do expect from the brand to fulfill its promises and consider the ethical part of food
processing important. This suggests that if Ricberry chooses to make statements about ecological
sustainability, it should provide clear evidence to support it.
Finally, strong brand image is important when expanding to other country or remaining
high performance in home market. The technical part such as English translation of website and
more user-friendly interface can create a competitive advantage and improve company’s image
and reliability. Overall, we think that the product has big future in case of implementing the
suggestions and be successful in neighbor countries.
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Appendixes Appendix A: Interview transcript
1. What is the exact mission and vision of Ricberry? By mission we mean bigger meaning
and/or story that the product and/or the company Ricberry is carrying.
Answer: Will be answered in the .pdf I’ve attached. Don’t focus on sugar content as the sugar
content for sweets is still high (even though it’s natural berry sugars).
2. What makes the product unique (we focus on berry bar)? How?
Answer: Look in the presentation.
3. Who are the competitors in the same market? Are you doing anything different to stand
out in the market? What?
Answer: Main competitors are Rāmkalni, Skrīveru Saldumi and different sweet companies but, if
we are talking about the 100% berry candy and products like our “ŠokOga”, then those kinds of
products are our own invention and up until recent we were the only ones in the world
manufacturing them. But any alternative sweets, protein bars, health bars, chocolate
manufacturers, etc. are our competitors.
4. Who is your target group? How do you approach your target group?
Answer: Our target group is women, aged 18 – 40 with middle or high income. So far we’ve had
some TV and magazine ads as well as tastings (which work best for our products).
5. Why should we eat the berry candy and on what occasion (for examples – after the gym
or during the movies)?
Answer: You should eat it whenever you want to have a snack, instead of traditional sweets, but
it’s also great for fast carbs after a work-out or extra vitamins, during illness.
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6. Why do you want to expand to another countries?
Answer: While we are always motivated by the possibility to provide opportunities for people to
start eating healthier, Latvia is such a small and low income country that local market simply
cannot sustain any kind of premium segment business.
7. What do you think about exporting in Estonia, Finland and Denmark
Answer: These countries are fine, I believe our northern mentalities are similar and the “green
trend” is very pronounced there.