Implementation of Kosta Boda in French Market

8/3/2019 Implementation of Kosta Boda in French Market

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The implementation of Kosta Boda in the french market Page 1

PORTFOLIO

INTEGRATED

MARKETING

COMMUNICATI

ON


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Introduction

Kosta Boda is a Sweden company of design and making high quality of

glassware and art glass.

Founded in 1742, Kosta Boda is today a reference in this sector in Sweden.

Its originality, its know-how and numbers of famous designers inside the

company gave to Kosta Boda an image of luxury, originality, and strong

values.

They are implanted, among others, in US where they made 20% of their

turnover (60% in Sweden) and in 20 other countries.

Although already selling products in France, Kosta Boda would like to

extend their enterprise to reach a new market.

The development of the decoration market in France will allow to Kosta

Boda to get in a dynamic market and growing.

This market in 2007 represented a turnover of 5.3 billion Euros

(approximately 15% of the market for household equipment, according to

a survey of Eurostaf), and in 2010 it is estimated between 7 and 10 billion

Euros1.

To set the strategy for implementing Kosta Boda in France, you will find in

this portfolio an internal and external analysis of the company, an

environmental analysis including the intensity of competition, and goals to

achieve. We will also study the ideal target for the development of the

company, and we will present you our recommendations about the best

tools to use in the French market to be known by consumers.

1 Enqute Point de vente , 2010



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Summary

I. Analyses of the current situation

- Key elements of the sector

- SWOT analysis

II. Objectives

- Settle on the French market

- Raise awareness on the brand

- Set up the brand as an offer of reference

III. The Target Audience

IV. Positioning strategy

V. Message strategy

VI. Medias strategy

- Website of Kosta Boda

-The exposition of Art - Claude Monnet in Paris

- The magazines

VII. Calendar of Activities

VIII. Budget

IX. Control and Evaluation



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I. Analyses of the current situation

- Key elements of the sector

The company, Kosta boda, masters the glassware and the glass art which

is strongly related o the art table industry composed by the art of crystal,

glass, ceramic, textiles and metals. We will focus on crystal and glass

market in France thanks to a report from the economic and industrial

minister of France (2007).

There are around 100 companies that are working in the tableware market

but only 10 of them are specialized in the glass market. The important key

that we can analyze is that the turnover of these companies representsmore than 60% of tableware turnover. It means 990 million of Euros in


Key elements of the

Key elements of the glass

In


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2005. Moreover we can see that the turnover decreased from 2004 to

2005 of 7, 5% whereas the investment increase. The reason is that

consumers are now versatile. Indeed French people prefer spending their

money in leisure and travel. Moreover wedding list are less popular

because of the fact that French people spend less money in cutlery and

crockery because they buy more often cheapest product to follow trends.

However, even if this figures can scare kosta boda to integrate the French

market, the situation changed. Indeed, in 2008 the glass market

represents 70% of the tableware. There is a decrease of the number of

companies in the table art from 97 to 66 and the turnover has decrease to

1.4 billion Euros. However the market is still growing between 3 and 5%

each year (NetPME, 2007).

The second important point for Kosta Boda is a summary of the French

Importations.



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French people or companies import 700 million Euros of tableware

products in 2007. It is 200 millions more than in 2005. Products from china

are imported a lot and the problem is that their products are cheap with a

low quality. This is why Kosta Boda has to keep or increase is quality to

differentiate his products with the Chinese one.

SWOTExternal:

Threats:

- Lot of competition in France

- Luxury goods people with big

income (old people)

Short life cycle

- No big interest for crystal ware

- Partnership needed to enter in the

French market

-Turnover decreasing in france, fired

people, ursine closing

-competitors are trying to differentiate

their product to jewelry

Opportunities:

- France = big luxury goods market

- Growth of DINKs and retired people

- Attractiveness of the market (reason why

so many actors)

-In france, the tableware market is

estimated to 3 billions euros with an

annual growth of 3 to 5 %

Strengths:

- Uniqueness of the products (artisanal,

hand made)

Weaknesses:

- website image dont reflect luxury goods

- unknown in France



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- Good image (quality) necessary for

luxury goods

- 8 designers (brand image and

fidelisation)

- too selective (high prices)

- high cost for the distribution

-No price on the website

Porter (environment analysis)

Potential entrants

Europe and especially France represent a big part of actors which are in

the market of goods for the table. Above all France is a market where

luxury goods are more important than in other countries. The firms that

are playing in this market come most of the time from the Commit

Colbert2. There are still some firms which are present in sector of Kosta

2 (Ministre de lEconomie des Finances et de lIndustrie, 2007, P. 8)



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Boda in France, it explain why it shouldnt be so easy to break into the

French market.

In Sweden, Kosta Boda is still a big player in the sector and his hand made

tradition seems to be a barrier for new entrants.

Buyers

Luxury goods must have a very good quality and image that must be

recognize by the customer. Another fact is that luxury goods dont have so

many customers because they must have a big purchase power to buy

products such as some from Kosta Boda. Thats why bargaining power of

buyers is important. Its the case in Sweden and in France.

Substitutes

There its a real threat because crystal can be replaced by many other

materials, for example normal glass, ceramic.

For the same need customers can buy non luxury goods. They will fit thesame function/need but they are less expensive. Above all nowadays,

because of the financial crisis people dont want to throw money away.

II - Objectives

Settle on the French market

Place the brand on the market of the tableware, by promoting a category

of product likely to represent the brand and corresponding to the attempts

of the customers.

Raise awareness on the brand



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Give an haut de game image to the brand, and communicating around

the arty products of the brand.

Set up the brand as an offer of reference

On a longer term, build a strong credibility around the brand, in order to

place the company in a position of reference on the French market

concerning arty tablewares products.

III - The Target Audience

The target heart:

Our target is composed of executives (or former executives) dynamic,

aged between 35 and 65. Indeed, this target seems more suited to the

sale of glassware / crystal luxury because of its "high class.

A recent graduate or employees of the middle class will not feel concerned

by this kind of products, so we must focus on this class.

In this segmentation, depending on the products sold, we can then target:

- The dynamic junior executives

- The senior (former executives, business leaders ...)

- Couples without children

We aim therefore 35-65 years with a strong focus in the design, products

and quality brands in search of a rare and rewarding their lifestyle.

This choice is justified by the fact that this target is January 1, 2010

approximately 40% of the total French population3.

In this age bracket, we can then segment these 40 % according to annual

incomes, social and occupational groups and culture of these persons.

3 Rpartition de la population, Insee, 2010



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According to the press kit Ipsos Media "La France des Hauts Revenus 2007

", in these 40 %, only 8 % of the French population live in homes with the

high annual incomes.

It is then these 8 % which correspond better to our heart of target.

They live for the greater part with annual incomes bordering 58 000 (90

000 for the richest 2 %) and are conscious that their purchasing power is

relatively high.

In these 8 % (representing 3,8 million persons), the class 35 - 65 years

represents 63 % of the persons with High Income, that means 2 394 000

persons.

Furthermore, this "High Income" admits that they look in a luxury item:

the quality (for 68 % of them), the originality (83 %), the valuation (41 %),

but also the know-how, the history of the company, the brand (74 %).

The products of the company Kosta Boda seem to correspond to the waits

of this target.

The professional target:

In the world of the luxury, the professional target shouldnt be neglected.

It can indeed allow to advertise free of charge thanks to the "word of

mouth".

These targets will be a key point of our development, which the

collaboration would allow us to win in fame.

Restaurants and bars chic for example, would allow us to have an asset as

for the targeting direct of our wished clientele.

For this professional target, the concerned products would be glasses.



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There are according to the Guide Michelin more than 600 restaurants

starred in whole France4.

It would be interesting to use one (or more) partner present on the high

end market to come forward more easily.

Partnerships are different from our competitors (partnerships with major

brands of champagnes, perfumes, wines, etc ... that we'll talk later), this

would allow us a unique integration in this market.

IV - Positioning strategy

Kosta Boda proposes a large range of quality glassworks, designed and

produced according to a process specific to the company.

Various artists work around the brand, and design the Kosta Bodas

products. As a result, the brand is able to offer a large range of atypical

glassware, for different purpose and occasions (decoration glassware,

glass art for the bathroom). We can also point out that the Scandinaviansschools of design are quite renowned for furniture and decoration, and so

are the designers.

All of Kosta Bodas glasswork is realised according to the genuine Swedish

handcraft, in traditional workshops. This undeniably adds to the perceived

value of the products. The price policy of the brand is more affordable

compared to its French based competitors.

As a result, a strategy of differentiation by the image would be relevant.

To do so, we should emphasize the highly creative image of the brand and

the uniqueness of its products, as well as their authenticity and quality.

These characteristics would thus provide a relevant and distinctive Image

to the brand. Even if the brand is positioned on the market of luxury

goods, its price policy will contribute in differentiating it from its

competitors.

4 Guide Michelin, 2010



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V - Message strategy

Kosta Boda in Sweden is in the sector of luxury goods, their products have

a high quality and moreover there are handmade finished. Every

glassware product is unique. In France they want to settle in the same

market: the market of luxury goods. The thing is if you want to sell

products such as Kosta Bodas products in the luxury market you must

have a special message. This message has to fit with the products that

Kosta Boda sells.

Due to the fact that Kosta Boda is acting in luxury goods sector, the

message which has to be provided is an image about quality, uniqueness

of the products, and this in order to fit with the segments expectations.

The Art aspect is also very important because in the glass factory in

Sweden 8 designers are working specially on product design.

To resume the message turns around art and uniqueness with the high

quality of Kosta Bodas products. It is these aspects because today its

almost the speciality of Kosta Boda. This is the heart of the message that

they have to communicate; this is where they have to focus on.

So as no to have a clash between the message to provide and

communication channel special media must be choose.

VI - Medias strategy

The website

The website of Kosta Boda does not seem to, prima facie, be adapted to

the products selling by the company. Indeed, we can read in the various

sections making up the site that the brand is modern, original, colorful, etc... However, few colors are present on the homepage. This certainly allows



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to focus on the few colored products presented and unfolded at the

opening of the site, but it makes the site seem rather to be still under

construction.

Color, shapes, sounds, etc ... are now prevalent items in all

advertisements and decorative modern websites. Example with the

homepage of Daums websites:

Daum count on here on a multitude of colors. This mix of chic (thanks to

the black surrounding the home page) and modern (flat screens, room

design,) make the website more luxurious, professional, sensual,

attractive for the consumer. It also seems more related to today's

demands in this sector, namely colorful, original, innovative...

The items are also quite empty and lack of originality to make consumers

want to learn more about the brand.

Finally, an important point to settle in France: possibility to choose the

French language on the website. This seems trivial but a French consumer



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may not feel concerned by the products offered if he cannot even use the

website in his native language.

This website is an asset to achieve our target because for the study of

"The France of high-income 2007", 74% of the 8% in high income are

connected on the Internet at least once a day (whether at home, work, or

in any other place).

This 74% represent 2 812 000 cybernaut.

The exposition of Art - Claude Monnet in Paris

In order to penetrate the French market, we have to realize a partnership.

It would permit us to get into the mind of people trough something which

is well known in France. Currently most of the competitors of Kosta Boda

are linked with different brand. Barracat is linked with Taittinger

(specialized in Champagne and owner of a big part of le Louvre

museum), Saint Louis is linked with Herms, Lalique is linked with Pochet

(leader in luxury perfume bottles) and Daum is linked to tetrad (a

goldsmith).

In order to differentiate our brand from the champagne and the perfume

we thought about a partnership into the exposition of Claude Monet in

Paris which is until February. The goal is associate some products of kosta

Boda to different artwork. The goal is to present the brand to French

people and this place is the best one. Indeed, 700 000 are attented to the

exposition. This population is generally composed by people that are fond

of art, design. Moreover it is in Paris which is a place composed by people

with high incomes. Indeed the exposition takes place in Les champs

Elyse which is one of the most famous place in the world. It will reinforce

our image.



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Th e magazines

There are today in France a multitude of magazines devoted to home

decoration, such as "Art and Decoration," "Elle Decoration", etc....

In the same study on high incomes in France 2007, 95% of High Income in

France are magazine readers!

Inside these 95% of readers, 24.5% read "Art and Decoration," 20.5%

"This decoration", 17.4% for "Marie-Claire home, etc. ...

Nearly 170,000 copies of "Elle Decoration" were sold in 20095, more than

300,000 copies for "Art and Decoration" in 20096, and nearly 130,000 for

Marie-Claire home in 20087.

Art & Dcoration is the perfect media to use in order to provide Kosta

Boda. Its the first magazine which is read by women between 25 and 49

years old. It represents a population who as an important purchase power.

614 000 of them are premium readers, the total amount is about

1 037 000 readers (men and women). Its also the perfect media because

making adverts in this magazine means to reach a lot of people in the

segment where Kosta Boda want to settle in and moreover these people

are comfortably off.

Elle Decoration represents the femininity, modernity and the smartness.

This magazine shows the elegance and the trend that tend to be the next

one. The readers are most of the time women, they represent 1 802 000

5 Lagardre Publicit, 20106 Le salon du livre, 20107 Anne Desnos-Br, rdactrice en chef Marie-Claire maison, 2010



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(of 2 341 000). The women that read Elle Dcoration have also a good

income. This magazine is the one who must be use to reach women.

Marie Claire Maison is more focused on emotions. The magazine wants

to recreate a particular atmosphere, a singularity, something special. The

aim is to difference himself from currents ideas of a house, of how it is

decorated. The people who read Marie Claire Maison are which are older

than 50 years old. They mainly are working people with middle incomes.

These magazines are an excellent way to come in French households and

more important, in their mind.

Positioning Target PriceArt & Dcoration - High quality

- Decoration like

the French art

de vivre

- people

between 25 and

49 years old with

high incomes

- mainly women

- one page,

between 28 400

and 33 700

- double page,

between 52 000

and 55 000 8

Elle Dcoration - femininity,

modernity,elegance

- women

between 25 and49 years old

- one page,

between 21 500and 32 900

- double page,

between 40 000

and 49 600 9

Marie Claire

Maison

- personal

approach of the

house

- women above

50 years old

- one page,

between 19 100

and 31 600

- double page,

between 39 300

and 43 600 10

In order to catch the attention of the consumer the advertisements in the

magazine will be reproduce 3 times in each one. It means 3 times in 3

8 Sources (http://www.tarifspresse.com/PDF/00015_20101018.pdf)9 Sources (http://www.tarifspresse.com/PDF/00092_20101018.pdf)10 Sources (http://www.tarifspresse.com/PDF/00311_20101115.pdf)



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different magazines, the total is 9. Due to some marketers, the repetition

number of advertising in order to catch the consumer attention is between

6 and 9.11

The aim of the media strategy is to require the perception of the

consumer, when its done it must have an affective component. The

product must speak to the consumer with the emotions. The cognitive

aspect here is not so important because for luxury goods the convenient

or the practical aspect isnt so important. Then comes the association from

the consumer with the brand, he must be automatically connected with

the brand. It means when he see a product of Kosta Boda (without

knowing it), he must recognize it and think this is a Kosta Boda product.

The association will then persuade the consumer that these products have

a good quality, that they are unique This persuasion will have an

influence on behaviour of the customer; we are here at the buying

moment.

VII - Calendar of activitiesJan

2011

Feb

2011

Mar

2011

April

2011

May

2011

June

2011

July

2011

Aug

2011

Sept

2011

Oct

2011

Nov

2011

Dec

2011

Exhibition at

Grand Paris -

Claude Monet

Advertisement

campaign

Partnership

with Fauchon

VIII - Budget

Tasks Action Sum

Update the Websitebetter design: colour,shape, sounds

6 000

11 Sources : Quattro Saatchi, 2003



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Subtotal 6 000

Advertisment in magazines

Art & Dcoration 2x one page 3 x 29 400

Elle Dcoration 2x one page 3 x 22 400

Marie Claire Maison 2x one page 3 x 19 500Subtotal 213 900

Partnership with Fauchon

Subtotal

Claude Monnet exhibition 500 000

Subtotal 500 000

Total 713 900

IX - Control and evaluation

Control and evaluation of communication are as essential as the choice of

this communication and implementation.

The control will, indeed, see if the media have been correctly chosen and

used, and are quite obvious to the intended target. The evaluation will

measure the impact that this communication had on the target.

The control:

In order to carry out a communication strategy, it is necessary to control

throughout the production that the tools used corespond with our

expectations by asking the right questions as:

- The messages are clear and legible?

- Are they done correctly to achieve the target?

- The advertising materials are they the ones originally selected?- etc

This will allow us to verify if the communication tools are correct or not to

our expectations and in case of error, to correct what is wrong.

The evaluation :

In order to verify the results of this communication, it is necessary to

assess the impact on consumers.



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We can assess this through:

- Among magazines "Elle Decoration", "Marie-Claire home," sold

- The number of visits to our website, as well as an increase or not of the

sales

- Thanks to a consumer survey ("Do you know the company Kosta Boda ?,

Have you already purchased Kosta Boda? Etc ...)

-

All this will be done in order to know the link between the company and

the target, and to know if the communication used permit to reach the

objectives of recognition to French customers.

These controls and evaluations are essential in order to better manage the

results of the communication plan, to see if whether objectives are being

met and if not, why it failed and what solutions it is possible to put in place

to fix it.

Bibliographie:

http://www.insee.fr/sessi/publications/dossiers_sect/pdf/equip_maison08.pdf

http://www.industrie.gouv.fr/sessi/publications/dossiers_sect/pdf/arts_table2007.p

df

http://www.industrie.gouv.fr/biblioth/docu/kiosque/cahiers/c124p26.html

(http://blog.netpme.fr/2007/04/03/les-arts-de-la-table-encore-une-filiere-

industrielle-en-difficulte/

http://www.insee.fr/sessi/publications/dossiers_sect/pdf/equip_maison08.pdfhttp://www.industrie.gouv.fr/sessi/publications/dossiers_sect/pdf/arts_table2007.pdfhttp://www.industrie.gouv.fr/sessi/publications/dossiers_sect/pdf/arts_table2007.pdfhttp://blog.netpme.fr/2007/04/03/les-arts-de-la-table-encore-une-filiere-industrielle-en-difficulte/http://blog.netpme.fr/2007/04/03/les-arts-de-la-table-encore-une-filiere-industrielle-en-difficulte/http://www.insee.fr/sessi/publications/dossiers_sect/pdf/equip_maison08.pdfhttp://www.industrie.gouv.fr/sessi/publications/dossiers_sect/pdf/arts_table2007.pdfhttp://www.industrie.gouv.fr/sessi/publications/dossiers_sect/pdf/arts_table2007.pdfhttp://blog.netpme.fr/2007/04/03/les-arts-de-la-table-encore-une-filiere-industrielle-en-difficulte/http://blog.netpme.fr/2007/04/03/les-arts-de-la-table-encore-une-filiere-industrielle-en-difficulte/

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Implementation of Kosta Boda in French Market