Marketing Plan for

in Switzerland

Preetham Samuel

Tijo Johny

Edita Kodatova

Tsvetelina Toseva

Kevin Elorza

Table of Contents

1. Introduction

2. Macroeconomic Environment in Switzerland

3. Microeconomic Environment in Switzerland

4. Market entry strategies

5. Marketing Mix

6. Final Recommendation

Introduction

Viessmann Kältetechnik is one of the leading producers of

refrigeration and clean room technology in Europe

Viessmann is currently looking to expand it's sales revenues

in Switzerland.

The merger of Viessmann heating of Viessmann Kältetechnik

will provide many opportunities for Viessmann Kältetechnik.

The marketing plan for Viessman was developed with the

help of macroeconomic and microeconomic analysis of

Switzerland.

MACROECNOMIC ENVIRONMENT

IN

SWITZERLAND

Macroeconomic Environment in

Switzerland

PESTEL Analysis

PESTEL analysis is used as a tool to

analyse a country.

Based on this information a

company can decide whether they

should enter a market or not.

PESTEL analysis gives the whole

picture of the environment of a

country.

GDP and Development The GDP of Switzerland is currently $635.65 billion

The GDP of Switzerland had contracted by 0.1% in the last quarter

of 2012.

Between 1980 and 1992 the GDP growth rate has been around

0.42 %

GDP – real growth rate in percent, 1999 – 2011

Exports and Imports

Switzerland exports stand at $190.1 billion

Switzerland has a trade deficit of $12.9 billion

Chemical, mechanical and electrical products are currently the

mainstay of Swiss exports.

Export and Import partners of Switzerland

Exports Imports

Germany 20.2% Germany 32.3%

US 10.3% US 10.4%

Italy 7.8% Italy 8.6%

France 7.1% France 5.0%

UK 4.8% UK 4.4%

Trade with Germany Germany is Switzerland's most important trading partner.

One – third of Swiss imports come from Germany.

Bilateral trade currently stands at almost $91 billion.

Germany regularly posts a trade surplus vis-à-vis Switzerland.

Switzerland is the fifth largest foreign direct investor for Germany.

Vice versa Germany is the 6th largest foreign direct investor for

Switzerland.

Transport System Switzerland has a dense network of railways and a very good road

network.

There are 4,492 kilometers of rail lines and 71,059 kilometers of

roadways.

Geneva and Zurich are the major airports and the port of Basel on

the river Rhine is a major trading hub.

Technology

Science and technology in Switzerland play an important role in

economy as very few natural resources are available in the country.

Switzerland spends 2.9% of the GDP towards R&D.

The Swiss government supports universities and other public and

private sector organizations for research.

Political stability

• Direct democracy

• The Swiss Constitution – legislation for whole country

• All other minor aspect – left up to legislation of cantons

• Minor changes to the Swiss constitution guite often

(main ideas stay the same)

Demographics

• Population – 7,8 million

• Most part of population lives in Geneva, Basel, Lausanne and

Bern

• 20% immigrants and resident foreigners

Population of Switzerland from 1960 to 2011

Trade Barriers and Restrictions • Minimal barriers

• High open to foreign trade and investments

• Macroeconomic stability

• Solid monetary stability

• Strong protection of property rights

• The overall tax burden: 30.3%

• The competitive regulatory framework strongly supports commercial activity

• Labor regulations are relatively flexible

• No trade weighted average tariff rate

• Low corruption

Inflation

• The average inflation in 2012: -0.71 %

• The inflation from November 2012: -0,3%

Current CPI inflation Switzerland – last 12 months

Exchange Rate

• Currency: Swiss franc

• 1EUR/1.2090 CHF

MICROECONOMIC ENVIRONMENT

IN

SWITZERLAND

Growth Potential in the Swiss Market

Refrigeration Companies

Supermarkets

Restaurants

Hotels

Hospitals, clinics and Laboratories

Competitors Narr (Narr Isoliersysteme GmbH).

Main competitor in Switzerland.

Product range is similar to

Viessmann’s.

Flaws: cold rooms cannot be

completely customized, technology

is not the same - is not as

developed as Viessmann’s.

Other main competitors in

Switzerland are Celltherm, SBS, Misa,

Roma

Viessmann vs Competition

Premium Products

Quality Guaranteed

Total customization

State-of-the-art technology

Complete after slae service

Potential markets

Supermarkets

ALDI

LIDL

MIGROS

COOP

Denner

SPAR

More than 4000+ stores all together

Supermarkets Market

Migros+Lidl Others

Supermarkets Market

Migros (1,500+ stores).

Coop (1990+ stores).

Aldi (150+ stores).

Denner (440+ stores).

Landi (330+ stores).

Lidl (86+ stores).

Spar (170+ stores).

Other Markets

Refrigeration companies:

Havo Group, Coldstone and Dinba

Hotels:

Hilton, Sheraton, 4 seasons and Marriot Hotel

Restaurants and Cafe's:

McDonald, Burger King, Hard Rock Café and Starbucks

Other companies:

Norvatis (Pharmaceutical), Sika AG (Chemical), Nestlé (Food

processing)

Customer Behavior in Switzerland

Customers in Switzerland require Viessmann products to have

150mm thickness for the wall

Peak demand is during the summer months

Customers usually tend to buy a lot during the summer months

Customers in Switzerland also expect the highest quality for any

product and Viessmann delivers it.

Intercultural Aspects

Switzerland has four official languages, they are German , French ,

Italian and Romansh.

Swiss people find Germans too unpolite.

Swiss people view Germans as competition for highly paid jobs.

SWOT analysis

MARKET ENTRY STRATEGY

Forms of Market Entry

Forms of Market Entry

Present Situation:

Viessmann Kältetechnik currently directly exports it's products

through Distributors in Switzerland

Suggested Alternative methods:

Joint Venture:

High return potential

Access to the distribution network, personal contacts with

suppliers, government officials, special skills etc.

Control in the activities of the company in the country.

Forms of Market Entry

Cooperative exporting:

Viessmann Kältetechnik can use an existing distribution network of

a partner without forming a joint venture.

Viessmann Heizung probably could help find a suitable partner in

this case.

Direct Investment:

Acquire a local refrigeration company

It involves high investment costs

MARKETING STRATEGY

Viessmann Relevant Market

functionality

Market segments

technology

RC

Supermarkets

Restaurants and hotels

Pharmaceutical companies

Cooling of goods

Storage of goods

Protection of goods

Safe waste disposal

Hospitals

Refrigeration

SilverProtec®

Anti slip floors

Functionality

All features of the cold room

Technology

Different materials which allow for the

various ways to use the product

Market segments

Customers with rather homogenous

needs and characteristics

Porter's Strategy

Competitive

Scope

Broad target

Narrow Target

Low Cost Differentiation

Competitive Advantage

Cost Leadership

Focus

Differentia -tion

Cost leadership strategy:

Company is a low cost producer

in the market

Uses cheap raw materials and labor

Economics of scale

Eg. Misa

Focus strategy:

Focuses on a particular market

segment

Products are developed exclusively

for this market.

A brand loyalty is built among the

clients.

Porter's Strategy Differentiation strategy:

The main aim of this strategy is to differentiate a company from the rest of it's

competitors

Why follow this strategy?

Viessmann must follow this strategy as it's products are mostly costlier than it's

competitors.

Requirements for this strategy

A good brand name and good product

Certificates from the government and other institutions

“Made in Germany”- feeling of exclusivity

A good after sales service

Missing requirement

Good sales persons to explain about the benefits of the products

Market Positioning

Positioning of Viessmann in the Swiss market:

Price Positioning

Pro

du

ct Va

lue

MARKETING MIX

Marketing Mix Product: Is an item that satisfies

what a consumer needs

Place: The possible ways to

provide the customer with the

product

Price: The amount of money

wanted from customer for the

product

Promotion: The ways to make

the customers aware of the

product

Product

The three levels of a product:

Augmented Product:

Supplementary the non physical

part

of the product

Actual Product:

Tangible, physical product that the

customer can touch and experience.

Core Product:

Intangible, physical product which

the

customer can’t touch

Product

Core Product:

The Core part for Viessmann products are

Cooling

Storage of items

The core benefit will not change for the Swiss market as the

core benefit cooling is the same as in the Swiss market

Product

Actual product:

Good brand name

Viessmann products embodies the highest possible

quality.

Individuality of each product.

Safe (Siver Protec and Anti Slip floors)

Good design

Technologically advanced

Product

Augmented Product:

Quick delivery of the products

Using company's own vehicles

Using freight forwarders

Good After Sales Service

This can be done by the company itself.

Warranty

Warranty period of 5 years should be good enough

Place Describes the channels of distribution used for supplying a

company's product to the customer.

There are 2 types of distribution: Direct and Indirect

distribution.

Viessmann currently sells through indirect distribution.

Place

Viessmann Distribution network in Switzerland

Place

Changes recommended:

Viessmann can look to increase it's percentage of sales to with it's

direct customers like supermarkets and hotels.

Now around 1% to atleast 5%

Viessmann needs an exclusive distributor of it's products in order to

differentiate itself from the rest of the competition.

Viessmann can educate it's existing dealers in Switzerland to explain

the advantages their customers are getting by choosing their

products

Promotion

Describes tools that can be used for promoting

Viessmann products

Corporate Website

Already functioning well but additional language

support can be added

Web Content

Event calendar can be included in the website

Trade Fairs Partizipation in the potential trade fairs to display

latest innovation

FBK expo is biggest pastry expo held at Bern,

Switzerland.

Trade Fairs

Mefa is the leading Exhibition for meat industry

at Basel Exhibition Center, Switzerland

About 87 exhibitors participated in 2011

Trade Fairs

Vitafoods Europe is the only event in the world to

concentrate exclusively on the expanding market for

nutraceuticals, nutricosmetics, functional foods and

drinks ingredients & raw material

Magazine Advertisement

MSM le mensuel de l'industrieprops and SMM industriezeitschrift für die praxis are most popular magazines covering industrial trends.

They have their own youtube channel with about 14,479 videos online and also a facebook page.

Internet Advertising

Viessmann kältetechnik can create a twitter page for better

public connectivity as many consider twitter to be more verified

source.

Youtube Advertising

Youtube channel for Viessmann kältetechnik can be created for

event publishing and marketing purposes

Television Advertising

It is the oldest and still most effective marketing method

Seasonal advertising of Viessmann kältetechnik products on TV

for familiarity of logo and products

Event Sponsoring

Viessmann is alrerady sponsoring many events yet the logo used for advertisement is Viessmann heizung

The logo of Viessmann kältechnik is not as popular as Viessmann heizung.

Price

Pricing is the process of determining what a company will

receive in exchange for its products

The needs of the consumer can be converted into demand only

if the consumer has the willingness and capacity to buy the

product

Marginal Cost Pricing

Marginal-cost pricing the practice of setting the price of a

product to equal the extra cost of producing an extra unit of

output.

Example:

If an item has a marginal cost = $1.00 and normal selling price =

$2.00, the company might wish to lower the price to $1.10 if

demand has waned.

Subsidiary Costing

Creating a low-cost product division by either a subsidiary

company or a sub segment of the parent company which offers

low-priced products.

Recommendation

There is still tremendous opportunity for growth in Switzerland

The current economic crisis in Europe might slowdown demand.

Hiring good sales persons for the Switzerland market is most

important task for a good sales in Switzerland

Supermarkets is currently the best bet in Switzerland,

Viessmann must tune it's marketing activities to capture a

significant market share.

Viessmann must look to increase it's percentage of direct

customers in order to earn more revenue.

Viessmann must also look for exclusive distributors of it's

products

Viessmann must be willing to make some investments in order

to gain a good market share in Switzerland

Thank you