A presentation about a new company in Finland which imports vegetables and fruits from Spain to Finland.
Cooperating with Mrs. Tran Bich Ngoc Nguyen, Mrs. Hoai Bao Tran Le, Mrs. Vu Quynh Huong Bui, Mrs. Nguyen Thuy Duong Doan and Mrs. Pham Tram Anh Nguyen.
2. Business Description
Import fresh Fruit – Vegetable from Spain to Finland
Flexible price
Target customer: end customer
Head quarter: Helsinki – Finland
6. Helsinki – Capital of Finland
The most populous and largest city
600,000 inhabitants
Advertise and market our company and products
widely
Capital of Finland
Center of business events
Opportunities to co-operate with international
partners
7. Why Helsinki ?
Main wholesalers located in Helsinki
Satotukku
Tukkutalo
Valora Oy
Advanced business services
Business environtment
Much of economic activity of the nation is carried on
around Helsinki Harbor
Metropolitan area with important worldwide businesses
having their headquarters here.
8. Why Helsinki ?
An important trade and business destination
(Internationcal Trade shows: Educa
Helsinki, ect.)
High level of education among the labour
force
Helsinki is located optimally from the point of
view of national markets as well as the markets
of northwest Russia and the Baltic States.
Good logistics network
9. Workforce in Finland
Young employees from universities and UAS
Students from universities and
UAS
Universities of Applied
Sciences:
Acrada UAS: 2346
Diaconia UAS: 3004
HAGA-HELIA UAS: 10500
Helsinki Metropolia UAS:
16000
Humak UAS: 1434
Universities:
10. Helsinki – Capital of Finland
Many people come to seek a job → more options for
companies
English is used popularly
Most of people can speak English as well as their
second language ( over 80% population can speak
English)
→ advantage for international trading
11. Helsinki – Capital of Finland
More than 50% immigrant population in Finland lives in
Helsinki
Many Spanish people are in Helsinki
Spanish people with experience and skill => a good
choice for company?
Further information: Helsinki is in top 10 for
productivity in Europe
12. Challenges
Highly operational cost (e.g maintenance or labor cost,
etc)
Competitiveness
Solution: Instead of Helsinki, we have some other
choices to place the headquarter such as: Turku,
Tampere.
13. Location and Planning
Sales-
Marketing
Administrative
Accounting
Staff
Senior Administrative
Manament
Customer
Service
Operations
Staff
Facilities
Management
14. TARGET MARKET - FINLAND
Reasons to choose Finland
1. The climate
2. Prices of fruits and vegetable in Finland comparing to
those in Spain
3. Being European Union (EU) members
15. TARGET MARKET - FINLAND
1. The climate
Harsh
climate, especially in
winter
→ lack of diversity in fruits
and vegetable
(Spain – better
climate, many different
types of fruits and
vegetable)
→ meet the demand of
customers in Finland
16. TARGET MARKET - FINLAND
2. Prices of fruits and vegetable in Finland
comparing to those in Spain
Fruits and vegetable grown
‐ in Finland-expensive
‐ in Spain-cheap
→ advantage to compete against domestic products
17. Prices of some fruits and vegetable of a
wholesaler in Spain
Product Approximate weight Average price (Euros)
per packaging
White grape (seedless) 5 kg 1.1
Valencia late orange 10 kg 0.75
Lemon 10 kg 1.0
Cucumber 5 kg 0.7
Spring onion 15 bunches 0.55
Broccoli 5 kg 1.65
Aubergine ”purple” 5 kg 0.8
Conference pears 4 kg 0.75
Green pepper 5 kg 0.75
Source:
http://www.fruitfromspain.com/uploads/2/4/7/7/2477920/wholesale_spanish_fresh_fruit_and_vegetable_fca_madrid_prices_-
_fruitfromspain.com_-_9_th_october_2012.pdf
18. TARGET MARKET - FINLAND
3.Being members of EU
Finland and Spain are in EU
→ same currency, customs tariffs, duty rate in
import and export
→ decrease risk and barriers in exchanging
currencies, importing and exporting goods
19. Target market
Demand for fruits and vegetables is increasing
High price of domestic products
Lack of farmer
Healthy lifestyle
Lack of diversity due to climate
Being a member of EU
20. Reason for the target
market, Finland
Demand for fruit and vegetables: increasing rapidly
Data through organic food research by Mary Allen
Smith
2010: turn over reaches 80 million Euros
1/5 of Finnish household by regular organic food (17% in
2008)
2011: expected to 110 million Euros and so on
1st half of 2011: 40% growth in sales of organic product
A great demand on fruit and vegetables
But, in comparison with other countries, the market
share is still low (1.2%)
And the demands excess domestic supply
A chance to jump to the market
21. Reason for the target
market, Finland
Lack of local farmers
Finland imports most of its fruits and veggies because they do not have enough farmers
that farm fruits and vegetables for their country
Trend of consumption
Finns have become more focused in recent years on leading a healthy lifestyle with more
consumption of fruit and vegetables. Because of increasing health
awareness, consumers prefer fresh fruit and vegetables over canned fruit and
vegetables, because fresh products are perceived as more healthy.
Consumption of organic food
Although organic food is still a small niche market, consumption is increasing fast in
almost all countries. Since the food scares that hit EU countries in the 1990s and
2000s, many people are concerned about food safety. This factor, combined with
increasing awareness of health, diet and nutrition, has increased interest in organic
food products, including organic fruit and vegetables.
22. High price of the products
Some typical fruits and Suomi Imported
vegetable
S-market research Cucumber 3.35 E/kg 1.45 E/kg
NO promoted price
Tomato 4.35 E/kg 1.65 E/kg
Apple 2.95 E/kg 2.39 E/kg
1.39 0.75
Carrot
E/pack E/pack
23. Lack of diversity
Especially in winter.
Domestic fruits:
Apples, plums, cherries and
berries
Domestic vegetables:
Potatoes, cucumbers, tomatoes
, lettuces, turnips and onions.
Everything else is imported
Apples: Italia, Poland,...
Oranges: Spain, Turkey,..
Bananas: Columbia, Spain,..
24. Lack of diversity due to Finland's
changing climate
Fruits need light, water, nutrients, carbon
dioxide, and warmth to grow.
Spain is the appropriate country for
exporting fruits and vegetables to
Finland.
Spain is the second largest exporter of fresh
fruit and vegetables in the EU, accounting for
18% of EU exports. Between 2004 and
2008, Spain’s exports increased on average by
2.7% annually, total €1.2 billion and 1.0 million
tones in 2008. The main exported product
groups in 2008 were canned olives, canned
Chart - Finland - Imports -
tomatoes, canned mushrooms and canned Evolution
peaches. Spain’s exports increased in value by
+2.7% on average per year. New partner
25. TARGET MARKET - FINLAND
Being members of EU
Finland and Spain are EU member states
Common currency Euro.
Zero-rated taxes for Intra-Community Trade.
Spain products fulfill European strict requirements for
fruits and vegetables. ( There are already a lot of
Spanish fruits on Finnish market-pictures)
→ decrease risk and barriers in trading.
26. Target customer
Need/desire
A kind of food eating habit
Different taste
Deliver more choice for domestic customer
OR?
29. Target customer
Economic situation
Average income and savings
Economics recession in Finland
Our service: reduce price and some seasonal discounts
30. Deciding factors
Cultural
Religions
Sub-culture: “Vegetarian” or “Meat lover”
Social
Family members’ eating habits
Reference groups
31. Deciding factors
Personal
Healthy lifestyle
Stable income
Economical
Government interfere
Fiscal policy
32. Deciding factors
Business rivalry
Own prestige and reputation
Existing domestic competitors
Substitute products
34. EuropGAP (Good Agricultural Practices)
Generic HACCP (Hazard Analysis and Critical Point)
National legislation and specific requirements in
Finland
36. Before import
Farms have GAP certification.
Finding and understanding clearly special and specific
requirements about vegetable and fruit in Finland.
Test/ Check products carefully.