Market Entry Strategy
The prospect of getting into a direct deal with a big supermarket chain, in this example, Coop, for the exclusive rights to sell Graze goods in their physical locations in Sweden, demands serious examination. As such, the market entrance strategy is employed to analyze the feasibility of this method, given the consumer landscape and retail environment in Sweden. The market entry approach in this example comprises Graze forming a direct agreement with Coop, a hypermarket based in Sweden (Shop online Coop Företag, n.d.). This technique skips the need for agents or distributors, enabling Graze to have greater control over its brand image and message inside Coop’s shops.
Through a direct arrangement, Graze may use Coop’s proven market presence and customer base to expand visibility and take market share in Sweden. The exclusive collaboration with Coop offers Graze a particular edge since it minimizes competition from other snack brands inside Coop’s physical shops (Shop online Coop Företag, n.d.). Graze will employ the primary stages to allow ease of entrance, which are important in ensuring that the entry considers the customer’s landscape and retail environment.
First, Graze should perform detailed market research to understand customer preferences, market trends, and the competitive environment in the Swedish market. According to Nguyen et al. (2020), sufficient demand for healthy and sustainable foods in the Swedish market justifies the sole distribution of Graze goods in Coop’s physical shops. This study will help evaluate the interest in nutritious and eco-friendly foods and analyze the possibility of success with Coop as a partner.
Negotiation and the terms of any agreements with Coop, supply chain, and logistics should come after this. Graze would need to participate in talks with Coop to set the conditions of the direct relationship, including price, distribution terms, shelf space allocation, and exclusive rights. Following closely, Graze will develop effective supply chain management and logistics infrastructure to ensure constant product availability, timely delivery, and correct stock replenishment in Coop’s shops. Collaboration with Coop’s supply chain and distribution network enhances inventory management and eliminates logistical problems.
Through marketing and promotion, Graze will design focused marketing and promotional efforts to boost awareness and drive demand for its goods inside Coop’s shops. According to Nazir (2019), competition for healthy foods in Coop’s shops is not tremendously saturated, enabling Graze to build a unique presence and earn a large market share inside Coop’s physical stores. As such, Graze may undertake in-store promotions, internet marketing, social media campaigns, and synergies with Coop’s marketing activities. The message should stress Graze’s health-conscious and sustainable posture to engage with the Swedish customer base.
Lastly, Graze should regularly monitor sales success, customer feedback, and market trends once the direct arrangement is created. As an assumption, Swedish consumers may significantly prefer healthy and sustainable food alternatives. As such, there is an increasing trend toward health consciousness, with a preference for natural, organic, and plant-based snacks (Mellor et al., 2022). Coop, as a large grocery chain, coincides with these customer desires because it provides a varied choice of sustainable and health-oriented items.
Global Trends and Their Application
Healthy Eating
The surge in demand for healthy snacks and plant-based meals is one of the most important developments related to Graze in Sweden. This trend is particularly important to Graze’s business proposition since it focuses on delivering healthy snack alternatives. Graze’s product portfolio comprises clean, nutritional snacks manufactured with natural ingredients that fit nicely with the rising customer desire for better food alternatives. As customers grow more health-conscious and seek plant-based alternatives, Graze can profit from this trend by providing a selection of plant-based snacks that appeal to their interests.
Sweden has a considerable and rising focus on health and well-being. Thus, the trend’s emergence is crucial for Sweden. Accordingly, the Swedish market has experienced a growth in sales of plant-based items, especially snacks. The Swedish plant-based food retail industry has stayed mainly constant between 2020 and 2022, gaining 0.3% to 2.22 billion kronor. Furthermore, Swedish consumers retain one of Europe’s highest per capita consumption rates of plant-based foods (Market insights on European plant-based sales, n.d.).
Additionally, qualitative evidence reveals an increased consumer preference for healthy snacking alternatives and a trend toward plant-based diets (Mellor et al., 2022). As such, as a recommendation, Graze should increase its assortment of plant-based snacks to adapt to the rising demand in Sweden. This might include providing new tastes and kinds of plant-based foods that correspond with Swedish taste preferences. The marketing mix should stress the health advantages, natural ingredients, and sustainable sourcing of these plant-based snacks by providing a greater array of plant-based meals.
Sustainable Packaging
The trend of a greater emphasis on sustainable packaging fits well with Graze’s brand promise since it strongly emphasizes sustainability and ethical manufacturing processes. Graze can demonstrate its dedication to sustainability by using eco-friendly packaging and enforcing moral standards all across its supply chain. This trend allows Graze to enhance its brand recognition and win more ecologically and sustainably sensitive customers.
For individuals who reside in Sweden, the trend is significant. Sweden is well known for prioritizing environmental responsibility and sustainability (Laine, 2023). According to Euromonitor International, 42% of customers worldwide who adopt a plant-based diet say they do it to lessen their environmental impact (Sventickyte, 2022). Swedish consumers prioritize sustainable packaging when making judgments about what items to buy (2023 Global Food and Drink Trends, n.d.). Conversely, research data by Otto et al. (2021) shows that Swedish consumers are becoming more aware of and concerned about sustainable practices, which also supports this trend (Otto et al., 2021). As a result, throughout the supply chain, food packaging preserves food safety and guarantees food quality.
As a recommendation, Graze should consider switching to recyclable or compostable packaging materials. The marketing mix should clarify this adjustment and emphasize Graze’s dedication to minimizing environmental effects. Graze may improve its market position and attract Swedish customers. To improve its brand image further and connect with environmentally concerned customers, Graze should also look into joint ventures with regional sustainability groups or projects in Sweden.
Country-Specific Communications
Segmentation, Target, and Positioning (STP) Strategy
Segmentation
Swedish clients’ interests, beliefs, lifestyles, views, and attitudes toward technology and Swedish culture are crucial to deciphering and executing the STP strategy. Swedish consumers place a premium on health and well-being, and as a result, they make informed decisions about what they put into their bodies (Spendrup & Hovmalm, 2022). As such, in Sweden, products that support consumers’ health and happiness are high on the list of priorities.
Target
Swedish consumers have a penchant for the great outdoors and lead active outdoor lifestyles. Products that fit with their busy lifestyles and do not compromise their health are highly valued by this demographic. However, consumers in Sweden usually have a favorable impression of healthy snacks, giving preference to all-natural and nutrient-dense foods (Corvo et al., 2020). They want firms to show they care about the environment by adhering to ethical business practices and providing recyclable or reusable packaging products.
Position
There is a growing interest in international cuisine trends, which influence Swedish culture. Quality and authenticity in food items that are representative of a consumer’s culinary heritage are highly valued. Consumers in Sweden tend to favor more streamlined and aesthetically beautiful packaging because of the country’s emphasis on minimalism (Nguyen & Nguyen, 2022). Swedish consumers like e-commerce sites because of the variety of food items and other items that can be purchased quickly and easily (Lavestl & Hammarstedt, 2021). In this case, consumers can interact with businesses and make purchases based in part on what they see on social media.
Marketing Mix
Graze can inform, engage, and convert Swedish customers through a variety of marketing platforms. Graze should use social media sites like Facebook, Instagram, and Twitter as a marketing channel for digital marketing to interact with its target market, disseminate information about its products, and advertise special deals. Online advertising may also increase brand recognition and website traffic with targeted display advertisements and search engine marketing (SEM) (Momen, Sultana, and Haque, 2020).
Influencer marketing is another channel that is becoming increasingly important. Graze would need to work with well-known bloggers or health and fitness influencers in Sweden who share those ideals. Through sponsored material, reviews, or recipe collaborations, they may advertise Graze items to a larger audience and establish credibility (Panchal, Shah, and Kansara, 2021).
Graze may also employ the content marketing channel. Graze ought to provide interesting and educational material on sustainable snacking, nutrition, and eating habits. Graze develops itself as a health and wellness industry leader by offering insightful information. Shared on the Graze website and social media platforms, this might take the form of blog posts, recipes, or video content.
For Graze, the aforementioned marketing avenues are successful for several reasons. Graze may accurately target its ideal audience based on demographics, hobbies, and online activities by leveraging digital marketing and social media. This makes it possible to communicate with prospective consumers more effectively and affordably (Vapiwala, 2020).
Additionally, working with established bloggers and influencers in the health and wellness industry may increase brand credibility and foster customer trust (Ye et al., 2021). As a result, advice from reliable sources may favor buying choices (Leung, Gu, and Palmatier, 2022). In the end, Graze can build a connection with its audience by producing interesting and useful content, giving them helpful information, and encouraging brand loyalty (Femenia-Serra, Gretzel, and Alzua-Sorzabal, 2022). As a result, the material may be distributed and shared, increasing the brand’s reach.
Standardization and Adoption of Social Media Communications
While certain social media communication elements may be universal, modifying the message and strategy to appeal to the Swedish target demographic is crucial. For instance, social media messages should be translated into Swedish using language and tone standards to engage the local audience via digital marketing. The influencers should use influencer marketing to translate the material into Swedish to respect the culture and strengthen the relationship between the company and its target audience.
Moreover, communication should be straightforward, succinct, and sincere, in keeping with Swedish principles. Furthermore, modifying social media information to reflect Swedish customs, culture, and interests is important. Graze can generate content that is relevant to and connects with Swedish customers by taking into account local holidays, events, and cultural quirks (Quintal, 2022).
Making use of Swedish themes, customs, or allusions may help the target market connect with and recognize the brand. Modifying visual material to include pictures, graphics, or films of Swedish people, places, or cultural components may strengthen the audience’s emotional connection (Luttrell & Wallace, 2021). Therefore, highlighting Swedish consumers in user-generated content or leveraging local influencers may help establish trust and authenticity.
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