A sweet Kiss – Business Plan

Transcription

2014
Erasmus Intensive
Programme
[A SWEET KISS – BUSINESS
PLAN]
A Sweet Kiss
Case Study
By:
Secil Ozergan
Leo Kipfelsberger
Mariana Machado
Amedeo Dekeyser
Elizabeth Geiko
Miia Outinen
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Erasmus Intensive Programme | A Sweet Kiss
TABLE OF CONTENT
Executive Summary ......................................................................................................................... 4
1. Introduction ................................................................................................................................. 5
1.1 History ................................................................................................................................... 5
1.2 Ownership ............................................................................................................................. 5
1.3 Location ................................................................................................................................. 5
1.4 Company’s product offering .................................................................................................. 5
2. PRODUCT AND SERVICE ANALYSIS .............................................................................................. 6
2.1 Core Competency .................................................................................................................. 6
2.2 Competitive Advantage ......................................................................................................... 6
2.3 Unique selling point............................................................................................................... 6
3. ANALYSIS OF THE MARKET AREA ................................................................................................ 8
3.1 SLEPT analysis ........................................................................................................................ 8
3.2 Country filter analysis .......................................................................................................... 10
Competitors ............................................................................................................................... 10
Entrance barriers ....................................................................................................................... 11
Market Size ................................................................................................................................ 11
Price ........................................................................................................................................... 11
Export costs ............................................................................................................................... 11
4. CULTURAL OVERVIEW AND LOCAL BUSINESS CULTURE IN THE TARGET COUNTRY ................. 12
4.1 National business and company cultures in the business environment ............................. 12
4.2 Communication in the business life .................................................................................... 12
4.3 Concept of time and money ................................................................................................ 13
4.4 Business gifts, religion and business dressing code ............................................................ 13
4.5 Cultural dimensions ............................................................................................................. 14
5. Analysis of the competitive environment ................................................................................. 17
5.1 Local bakeries ...................................................................................................................... 17
5.2 Brands .................................................................................................................................. 20
6. BUYING BEHAVIOUR .................................................................................................................. 21
7.SWOT analysis of the market area ............................................................................................. 21
8. FIRST YEAR OPERATING STRATEGY: .......................................................................................... 23
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8.1 marketing mix 4 P’s ............................................................................................................. 23
8.2 Outdoor interactive campaign ............................................................................................ 25
9. Operational Budget ................................................................................................................... 25
9.1 Cash flow statement ............................................................................................................ 25
9.2 Money necessity .................................................................................................................. 26
9.3 Break even point.................................................................................................................. 27
9.4 Financial conclusion............................................................................................................. 28
10. Conclusion and Recommendation........................................................................................... 29
Reference list ................................................................................................................................. 30
Appendix........................................................................................................................................ 31
Reporting Survey Results........................................................................................................... 31
Evaluation multicultural teamwork ........................................................................................... 33
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EXECUTIVE SUMMARY
Stroopwaffles are one of the best known candies in the Netherlands and they are used to be
eaten with coffee or tea. The company, which first was called El Beso Dulce, decides to export
the product also to other countries because the entrepreneurs found out that there could be a
demand for such a product.
To consider which country fits the best for this product a decision matrix was made to find out
the best possible option. The result of that was that the company is going to export to the
Portuguese market. Because the name was El Beso Dulce (Spanish) and the company wants to
enter the Portuguese market the name was changed from El Beso Dulce to “A Sweet Kiss” which
has the same meaning.
The company decides to offer two different sizes of the package with three different flavours to
reach as much people as possible with this new product. The sizes are about ten pieces in one
package and a one-piece-package. These products will be offered in premium class
supermarkets and the smaller ones in cafeterias.
There is a big demand for candies in Portugal but there are also a lot of providers of sweets and
patisseries. A Sweet Kiss wants to create a preference for stroopwaffles and make it the candy
number one which is consumed to coffee or tea.
Because also the Netherlands as Portugal are settled at the Atlantic coast it is the easiest and
cheapest way to transport the stroopwaffles by ship from Rotterdam to Lisbon. Because of the
expiry date of the product it will be the best to make a delivery every second week.
In the Netherlands there are a lot of providers of stroopwaffles and the price is in a lower priceclass. Because of the fact that A Sweet Kiss is going to be the only provider of such a product it
will be established as a high-class product with a higher price.
The survey in Lisbon brought out that the target audience is 24 to 35 years old. These are the
people who have enough money and want to spend it on quality products like the stroopwaffles
of A Sweet Kiss. To use the demographic and geographic advantages the company decides to
establish the new product at first in Lisbon.
The company has no factory to produce and no office, the entrepreneurs Jasper Setz, Erik
Huizing and Kevin Mooibroek have a contract with a producer of stroopwaffles that produces
the stroopwaffles for them and also do the packaging. This model only needs a small amount of
capital and so the equity about 10.000 Euro with a bank loan of 21.000 Euro should be enough.
Because of the eating habits in Portugal and because they like to eat candies to their coffee the
stroopwaffles could be placed on the new market as a niche product. The chances to be
successful on such a new market are huge and to invest in such a product could be very
profitable in the future.
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1. INTRODUCTION
1.1 HISTORY
A Sweet Kiss is a company based in the Netherlands, which serves in “sweet goods” market. The
company identifies its products as “perfect snack for any time of the day” because of the pure
ingredients of the authentic crispy waffle with delicious caramel.
The company has been founded in December 2013 a result of one of the owners having received
positive feedback while distributing Dutch specialties on a business trip in Central America.
Upon returning to the Netherlands the owner established the idea to start a company with the
goal to serve as an intermediate between the actual factory that produces the sweet goods and
the wholesaler abroad.
Based on the fact that “love is all around and it is in the little things” the company is focusing on
taking place in sweet moments of sharing our love with people around us. Dutch and other
Europeans eat stroopwafel for decades and the old recipe has been transferred and cherished
from bakery fathers to bakery sons.
1.2 OWNERSHIP
Jasper Setz, Erik Huizing and Kevin Mooibroek are three entrepreneurs that started A Sweet Kiss
from Emmen, the Netherlands. All three are involved in the company, but everyone with his
own expertise. Kevin is responsible for the sales, Jasper for the marketing and Erik for the
financialsKiss.
1.3 LOCATION
The company is only three months young. In these three months they found a production
location in the Netherlands, created the box where the waffles will be sold in, they went to the
international sweetness fair in Germany to talk with possible buyers and to see who the
competitors are. At the moment there is money invested in the company, the branding is
completed and they have a vision and goal and are all three driven to succeed this company.
1.4 COMPANY’S PRODUCT OFFERING
The company’s main product offering is original Dutch stroopwafel. Stroopwafel translated:
syrup waffle is a waffle made from two thin layers of baked dough with caramel syrup filled in
the middle. A Sweet Kiss will not only sell the original stroopwafel but also a gluten free
stroopwafel and a biological stroopwafel.
The stroopwafel will be wrapped in vacuum cellophane this will keep the product fresh during
the transport. The package will be made out of gold paper with the logo, ingredients list the
package can be adjusted to the country selling it to. There is a possibility to produce a
sustainable version of the wrapping paper and package for the demand in specific market.
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2. PRODUCT AND SERVICE ANALYSIS
2.1 CORE COMPETENCY
A Sweet Kiss is determined to serve its suppliers with core competencies such as quality and
flexibility. In furtherance of the fact that the entire production of the sweets is subcontracted to
an external factory that already maintains large facilities, the company is able to supply directly
any amount of units requested by the retailers.
Furthermore, the producing factory in holds an outstanding position with consideration to the
delivered and perceived quality of their products and has established its unique market position
for the past decade.
In addition, food safety and quality insurance is ensured throughout the entire process, from
manufacturing to distribution to the end consumer. Regular quality checks are mandatory for
the products before they are being delivered to the retailer.
2.2 COMPETITIVE ADVANTAGE
A particular competitive advantage from which the company A Sweet Kiss benefits is the fact,
while competition is very limited in Portugal, the Dutch firm already maintains an assortment of
products that varies largely in its ingredients.
The company is able to produce gluten free, organic and normal stroopwaffles, which allows the
customers to choose from a variety of healthy and biological produced cookies. In addition, with
consideration to quality and flavor, the normal stroopwaffles are subdivided in its ingredients as
follows:



Full Butter: richest taste and most premium product of the selection
Full margarine: The cheapest option for customers who are not as taste wary
Half butter/Half margarine: A mixture between the two options
The customers are enabled to choose from a selection of high quality products while at the
same time being able to decide whether they prefer gluten free or organic stroopwaffles, while
other existing competitors only have the most basic version of the cookie to offer.
2.3 UNIQUE SELLING POINT
Origin
The stroopwafel originates from Gouda in the Netherlands, it was first made during the late
18th Century or early 19th Century. To make sure the premium quality and taste of the
stroopwafel, A Sweet Kiss decides to produce the stroopwafel in a place where it belongs, the
Netherlands.
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Experience
Rather than just selling a product, A Sweet Kiss is selling an experience; it all starts with the
attractive packaging of the product. A luxurious golden box with a big sweet kiss and windmill
introduce the beauty of the Netherlands. The experience of eating a stroopwafel from A Sweet
Kiss should be as nice and sweet as kissing a blond girl from the Netherlands.
Healthiness
Nowadays, people are getting more and more concerned about what they eat and where it is
coming from. Customer’s satisfaction is A Sweet Kiss prior concern, therefore, A Sweet Kiss will
offer the gluten-free and the biological stroopwafel to meet the demand for this certain
customer segmentation. In combination with a sustainable packaging A Sweet Kiss can be sold
as green products.
Convenience
First of all, the design of the package of A Sweet Kiss activates the convenience on
transportation. Furthermore, according to the owner’s speech, A Sweet Kiss is also going to
provide vacuum packaging which can provide proper protection for the product and more
convenience for customer to carry around.
Flexibility
The flexibility doesn’t only stand for the products of A Sweet Kiss. In this case, it mostly stands
for the flexibility of three entrepreneurs because they are leading their products to be more
flexible. First of all, the entrepreneurs have the networks for the waffle production, hence, less
investment is needed and large variety of products is possible to be produced to face the
demand from various niche markets. Moreover, these three entrepreneurs have a clear
overview about how they want to sell its product and what kind of the experience they want to
delivery to their customer, therefore, while implementing in the Marketplace of Costa Rica, their
concentration is on Branding.
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3. ANALYSIS OF THE MARKET AREA
Within the subsequent part, a SLEPT analysis of Portugal has been conducted. Social, legal,
economic, political and technological aspects have been analyzed in furtherance of attaining
effective information of the countries market attractiveness with regards to the Dutch product.
3.1 SLEPT ANALYSIS
Social
In 2012, 18.20% of the Portuguese population was above 65 years of age. Around 65.70% of the
population belongs to the 15–64 age group and 16.10% are in the 0–14 age group. This age
structure is similar to the demographic trend in the rest of Europe, where populations are aging
and fewer people are entering the workforce.
In accordance with the structural measures required under the bailout program, the
government has taken steps to reduce segmentation of the labor market, fostering job creation
and enhancing worker mobility.
Moreover, social income inequalities have served as a major topic since the 1980’s with S80/20
(ratio of total income received by the 20% of the country’s population with the highest income
to that received by the 20% of the country’s population with the lowest income). (World
Factbook, 2013)
Legal
According to Paying Taxes 2013, businesses in Portugal suffer from one of the highest tax
compliance costs in the EU & EFTA area. It takes 275 hours to comply with taxes in Portugal,
compared to the EU & EFTA average of 184 hours. In furtherance of the above mentioned fact,
the Dutch company should take into consideration hiring a local tax agent.
In 2013, the government announced comprehensive corporate income tax reforms to boost
investment and growth. The reform measures include the gradual lowering of the rate to
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around 18% by 2018, rationalization of incentive schemes and broadening of the tax base.
(World Factbook, 2013)
Economic
The economy was hit by the financial crisis of 2008–09, and GDP contracted in 2008 and 2009.
The economy registered a modest recovery to grow 1.93% in 2010; however, it contracted again
in 2011 and 2012 by 1.42% and 3.21% respectively. According to recent estimations, the
economy will further contract in 2013, although to a much lesser extent than in 2012.
According to the IMF, the current account deficit plummeted to 2.87% of GDP in 2012, a major
improvement compared to 2010 and 2011, when it was at 9.97% and 6.44% respectively. In
absolute terms, the deficit was down from $31.98 billion in 2008 to $6.04 billion in 2012.
(Economy Watch, 2013)
Political
Short-term political stability is expected following the formation of the PSD/CDS-PP coalition
government, which enjoys a reasonable majority, after the June 2011 general election.
However, this term will still be challenging as the country copes with the economic downturn
and fiscal consolidation.
Bilateral relations have been expanding fast between China and Portugal. China made its largest
foreign investment in Portugal in 2011 and the country has attracted numerous other Chinese
investments in various sectors. (Index Mundi, 2013)
Technological
The number of patents granted by the US Patent and Trademark Office to Portugal increased
from 30 in 2011 to 40 in 2012; however, in comparison, Spain was granted 642 patents, Greece
82 patents, and Italy 2,120 patents. This indicates that the country has not consistently
encouraged innovation and that the R&D scenario is not well developed.
R&D subsidies in Portugal are amongst the highest in OECD countries—much above the EU
average and the US. Giving impetus to R&D is the key for Portugal to raise its productivity and
living standards and the government rightly provides high subsidies to R&D activity. (Index
Mundi, 2013)
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3.2 COUNTRY FILTER ANALYSIS
A Sweet Kiss has to be imported to a country with particular dessert preferences. Countries in
South Europe prefer sweeter desserts than in North Europe. This is one of the main reasons why
we decided to serve the Portuguese or Turkish market. To find out which of these two would
have better trading opportunities we created a decision matrix. The entrepreneurs of the
company are interested to export the product to Costa Rica, or to other Latin countries that is
another reason, why these two countries were suitable to a decision matrix because of some
similar habits.
We put the 5 most important topics into our decision matrix. The significance of each criterion is
set up with a percentage which shows the importance of this aspect. Like in every company it is
important to have such a minimum of costs to produce and to export the product. Because of
that we decided to include the costs of export and the entrance barriers like taxes and duties.
Also important if you want to join a new market is the turnover you are expecting. So the price
people want to pay for the product and the market size are also parts of our decision matrix.
Last but not least important are the competitors which are placed in the target market with
substitution-products.
Portugal
Importance Value
Turkey
Total
Value
Total
Competitors
20%
7
1,4
3
0,6
Entrance barriers
25%
10
2,5
7
1,75
Market size
15%
3
0,45
9
1,35
Price
25%
8
2
6
1,5
Exports costs
15%
7
1,05
4
0,6
Total
100%
7,4
5,8
COMPETITORS
In Turkey the stroopwaffles are a new dessert-trend which spread out the last few years.
Because of that there are some producers of this sweet dish and the market is nearly filled with
these companies. In addition there are some traditional candies, which are substitution
products for our stroopwaffles and are also served with coffee. Such candies are in Portugal
either but the stroopwaffle is going to be an absolute new product and the chances for success
are much higher.
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ENTRANCE BARRIERS
Portugal belongs to the European Union and so there are no barriers left like duties and taxes
for exporting our product. Turkey does not belong to union, so there are going to be costs which
are not necessary and that will reduce the profit of A Sweet Kiss.
MARKET SIZE
We decided to go to the biggest city of each country so we had to compare the market in
Istanbul and Lisbon. Both of these cities are well known for much tourists but our target group
are the inhabitants of each city and there are much more in Istanbul (8.8 Million people) than in
Lisbon (520.000 people).
PRICE
For every company it is important for which prize their products are sold. In Portugal the price of
food is higher than it is in Turkey. Because of that the profit per unit is higher and that is the
most important in the beginning because you are more flexible and the risk is less because you
do not need so much sales to get to the breakeven point.
EXPORT COSTS
The export costs are the most important costs except the production costs. We decided to
deliver the products with the ship because each of the countries is close to the sea and it is
much cheaper than deliver it with a plane. The distance to Portugal is much shorter than to
Turkey and so it is cheaper to get the products there. The shelf life of the stroopwaffles is about
three to four weeks so it is no problem in both of these cases.
In our last evaluation we divided 100% on each of the five topics and as it is shown in the image
the most important reasons were the price and the entrance barriers. The market size and the
export costs were not that important because the company is not able to serve a market which
is too big and the export costs are not that high.
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4. CULTURAL OVERVIEW AND LOCAL BUSINESS CULTURE IN THE
TARGET COUNTRY
Doing business in foreign countries can bring with it cross cultural communication challenges.
Understanding and appreciating a country's business culture, protocol and etiquette is
important in nurturing good business relationships.
Target Country: Portugal
4.1 NATIONAL BUSINESS AND COMPANY CULTURES IN THE BUSINESS ENVIRONMENT
In Portugal, there are many local companies who are related to the food and beverage industry.
The Mediterranean climate allows Portugal to have lots of crops, vineyards, which give the
population great ingredients to consume, making the wine and agriculture sectors very
profitable.
Another very popular business of the country is the bakery industry. People are used to go to
cafes or cafeterias to have coffee and to eat something sweet everyday. It is part of the
Portuguese day to spend some time on the cafe. It is also important to refer that in Portugal,
people give a lot of importance to the afternoon snack and almost no one skips it, allowing this
industry to resist the crisis. (Business Culture, 2012)
Some countries in Europe are going through an economical crisis, which is making some
industries crash. One of the industries that suffered more with this crisis was the food and
beverage, because people are only consuming what they really need and they don’t buy
superficial items that aren’t really important to their survival and to live a comfortable life and
they are really aware of the prices they pay for a certain product.
The HO-RE-CA channel suffered major crashes in their profits. Portuguese people nowadays
don’t often go to the restaurants and cafes for lunch because instead they bring food from
home to their work place and don’t spend that extra money. This habit is becoming really trendy
right now which makes it even more difficult to the industry. However, because people can’t go
out for lunch or dinner but they continue to like to go and to enjoy time with their friends or
family, the breakfast time and the afternoon snacks didn’t feel the same crash as the lunch and
dinner times. (Business Culture, 2012)
4.2 COMMUNICATION IN THE BUSINESS LIFE
When it comes to communication, Portuguese companies are starting to realize that it can make
or break a business and the industry is growing quickly. Some years ago, companies only
communicated what they were selling without thinking about the consumer’s needs and
behavior because the economy was good and people would buy either way.
With the economic crisis, Portuguese consumers started to rationalize what they would buy and
why they should buy a more expensive product instead of a cheaper one. This made companies
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start to think about how they would attract people to continue buying their products, which
made them give more importance to marketing and to the power of communication.
Nowadays the communication sector it’s growing in Portugal and it is possible to see great
communication examples in all kind of industries. When it comes to the food and beverage
industry, communication is mostly bellow the line because there aren’t big chains of restaurants
or cafes spread all over the country. This means that local businesses rely mostly on word of
mouth and promotions to communicate their products. (World Business Culture, 2012)
4.3 CONCEPT OF TIME AND MONEY
In Portugal, people don’t really give much importance to the time concept. It is normal for
Portuguese people to be late and they see time as a flexible thing. However, when it comes to
work, people try to do their jobs the best way possible without compromising many hours.
Another important thing regarding time is that Portuguese people work many hours a day,
which makes them value their free time and think about what they do with it. Portuguese
people value being outside and making the most of the little time they have to relax. The most
common things to do in Portugal is going to a café and spend the afternoon on the esplanade
relaxing or to go jogging near the river, park or the beach. (World Business Culture, 2012)
Due to the economic situation of the country, money is really important to Portuguese people.
The minimum wage is approximately 480€ and compared to the cost of living, it isn’t much. This
reality makes people think a lot before they buy something and what to buy because now
Portuguese people are trying to save some money for their future.
4.4 BUSINESS GIFTS, RELIGION AND BUSINESS DRESSING CODE
If Portuguese people want to buy something as a business gift, they would normally buy
something from the food and beverages industry such as a bottle of wine or a local product. This
would be a great opportunity for the product, which is Stroopwaffles because people could give
it away as a gift to their business partners since it is a premium product.
Religion is a big part of the Portuguese lifestyle and there are churches wherever you look. Most
of the population is catholic but the country decided a few years ago to be a non-religious
country and not to support just one religion and be opened to all of them. However, the country
is often seen as a catholic country because of its roots and there aren’t big communities of other
religious beliefs. Despite that, people are very open minded when it comes to other people’s
choices and there is no kind of discrimination or conflicts between different religions.
(Expatfocus, 2011)
The dressing code varies with the industry people are working but usually it is quite informal and
you can dress in a relaxed and casual way. Only if people work for a bank, an insurance company
or if they are in the health sector they have to be more careful with what they dress.
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4.5 CULTURAL DIMENSIONS
To better understand how the country works, it is necessary to do a deeper analysis of its
population. This analysis is divided in six different parameters: power distance, individualism,
masculinity, uncertainty avoidance, pragmatism and indulgence.
Power distance: this aspect deals with the disparities in societies from different countries. The
definition of power distance according to the Hofstede’s cultural dimensions theory is the extent
to which the less powerful members of institutions and organizations within a country expect
and accept that power is distributed unequally.
In the Portuguese case:
37%
Power
Distance
63%
This numbers show that Portuguese people accept hierarchical distance. This means that
Portuguese people think that if someone is on the most powerful positions of a company, for
example, they should have privileges and are expected to behave differently than the lower
positions. (geerthofstede, 2011)
Individualism: This dimension refers to the interdependence of the population and how they
relate to each other.
Individualism
27%
14
73%
This data shows that the interdependence of Portuguese people is really important and that for
the population it is important to relate with each other. The meaning of the word family in
Portugal is also different from other countries in Europe because for a Portuguese person,
family includes not only de parents and children but also the extended family like the aunts,
cousins and grandparents. This shows that people don’t really like to be alone and the
Portuguese rely on other.
When it comes to the business industry, employees trust each other and like to work in groups.
In a company, everyone from a specific area is responsible for the success or failure of a certain
project.
Masculinity: This aspect may refer to different thing according to the score the population has. If
there is a high score, it means that such aspects drive the population and they try to be the best
in the company High scores are referred as the masculine side of a population. If there is a low
score, it refers to the feminine side of the population. This means that when there is a lower
score people care for others and for the quality of life.
Masculinity
31%
69%
What this means is that in Portugal is a mostly feminine country and people aren’t very
competitive. In a business context employees are expected to help each other and people value
equality, solidarity and quality in the work environment. When there is a problem, it is usually
resolved by negotiation and compromise from both sides so that no one is unhappy with the
situation. (geerthofstede, 2011)
Uncertainty avoidance: This aspect refers to how society deals with the uncertainty of what
future holds. There are populations who try to control the future and other who just let it
happen and
live life one
day at a
time.
1%
In
the
Uncertainty
avoidance Erasmus Intensive Programme | A Sweet Kiss
99%
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Portuguese case:
This means that in Portugal people don’t like to live one day at a time and that they give lots of
importance to what the future holds. People like rules and to be told what is going to happen.
This also means that people aren’t very open-minded and they don’t like unorthodox behavior
or ideas. (geerthofstede, 2011)
Pragmatism: this dimension refers to how people react to things that can’t be explained. In
countries with high scores in this dimension, people don’t need to be explained of everything
that happens.
Pragmatism
28%
72%
Having a low score means that Portuguese like to try and understand things that can’t be
explained. This type of society are concerned with establishing the absolute truth and don’t like
the unexpected.
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Indulgence: This dimension relates to how people control their desires and impulses. If the
population has low scores, it means that people are more strictly raised. One the other hand, if
there is a higher score people are more relaxed and don’t control their desires.
Indulgence
33%
67%
Portugal has a low score, which means that its culture can be defined as restraint. This means
that Portuguese people are usually pessimists and they don’t spend much time in leisure time
and they control their desires because they feel that they can’t be indulgent and enjoy their
time, as they want. (geerthofstede, 2011)
5. ANALYSIS OF THE COMPETITIVE ENVIRONMENT
Because A Sweet Kiss will export to the Portuguese market, and especially in the larger cities, we
decided to base our analysis of the competitors on those from Lisbon. Our competitors are the
local bakeries, who choose to produce their own sweets and not to import them, and the brand of
the supermarkets.
5.1 LOCAL BAKERIES
Local bakeries in Lisbon mostly produce their own sweets and pastries, so in that way we can see
them as competitors because they don’t want to import products.
Name
Address
Strengths
Weaknesses
 Has a really  Higher priced
beautiful
Lisbon, ME 04250
website
 Produces some
bread too
 They sell wine
 They’re
specialized
in
www.benoitsbakery.com
hand
crafted
desserts
Benoits Bakery is a local bakery located in Lisbon which produces its own pastries, artisan breads and
Benoits Bakery
72 Lisbon Rd
17
so on). Because it produces its own bread, some people may want to buy some sweets so they can
eat it after the bread. The company really has a beautiful website so by creating this, they made a
really good promotion channel. (benoitbakery, 2011)
Casa Pasteis de Belem
Rua Belém
1300-085
Portugal
http://www.pasteisdebelem.p
t/en.html
84-92,  Really nice and 
Lisboa
interactive
website
 Very
good 
service

 Original products
Not that many
different
products
Higher priced
Very busy during
the weekends
Casa Pasteis de Belem is a bakery located in Lisbon. They have a really nice and interactive website,
so that’s already a good way to promote their products. Their products themselves on the other
hand, don’t have that many variation and those products are pretty high priced. They only sell typical
Portuguese coffee, so maybe the tourists won’t like that. (pasteisdebelem, 2011)
 Luxurious setting  Higher priced
 Both sweet and  Isn’t located on
Lisbon 2775
salty pastries
the tourist track
 You can have  Doesn’t have a
breakfast there
website
 Traditional,
nostalgic café
Pastelaria Lud de Mel is a traditional and nostalgic café with a very luxurious setting. It is good that
they both have sweet and salty pastries, so the Portuguese can buy the really sweet pastries and the
tourists can buy the salty ones. Because the people can have breakfast, they can buy some pastries
with it. Considering promotion, however, they don’t have a website so they will have to look for
other ways to promote their product. The location of the bakery is in Lisbon, but not on the more
famous tourist track, so they will have less people passing by then other bakeries.
Pastelaria Lua de Mel
Av. da Republica
Tease
Rua do Norte n031-33
Lisbon 1200-283
http://teasebakery.blogspot.p
t/
 Well-known

brand among the
locals
 Are specialized

 Beautiful
website
It isn’t located in
the
crowded
center of the
city
People can only
buy cupcakes,
they can’t buy
coffee
18
Tease is a cupcake store located in Lisbon and it’s very famous among the local people. They really
like going over there to buy some cupcakes. Their best promotion is the mouth-to-mouth promotion
because all of the local people like going there and tell others about it. Nevertheless, they also have a
beautiful website where they can promote their products.
Karl’s cookies
http://www.tripadvisor.com/
Restaurant_Review-g189158d5003970-ReviewsKarl_s_CookiesLisbon_Estremadura.html
Rua Infantaria 16, 77B,  Something
Lisbon 1350-101
different
than
the Portuguese
cookies
 A lot of variation
of pastries
 Located in the
main street




The
owners
aren’t
Portuguese
The shop has an
English name
Only American
style cookies
Doesn’t have a
website
This is a bakery that produces cookies, cupcakes and brownies, but where you can drink a coffee as
well. They have more than just what you would expect, for example they have a cookie with wasabi
and sesame. The owners are from the USA. As they don’t have a website, their promotion could be
done much better. They have middle priced products.
A Cabreira
Largo de Grace 42
http://www.tripadvisor.com/
Restaurant_Review-g189158d3835366-ReviewsA_CabreiraLisbon_Estremadura.html
Lisbon
 They sell coffee, 
fresh
orange
juice and sweets
Doesn’t have a
website
A Cabreira is a bakery with coffee, fresh orange juice and sweets located in the main street in Lisbon.
So, because it is located in the main street, a lot of people will pass by and could see the display with
all the different pastries. This actually is a way of promoting their product. But because they don’t
have a website yet, their promotion could have been a lot better.
Pastelaria Herculano
Rua
Alexandre 
Herculano, 29A

Lisbon 1250-008


Lower priced

Sell coffee with
it
Have
both
sweet
and
savory pastries
Good service
Can’t
communicate
really well in
English so it’s
difficult
for
tourists
19
Pastelaria Herculano is a bakery that’s located in Lisbon.
5.2 BRANDS
Biscotto
Aldi
has
several 
residents in every big 
city in Portugal
Low priced
Well-known
brand

Not that many
different
products
http://www.aldi.pt/aldi_bisco
tto_467.html
Biscotto is a brand of Aldi. They sell some waffles, cookies, chocolate cookies and biscuits. They are
really low priced. Aldi is active on Facebook and they have a really good website.
Tamara
Aldi
has
several  Low priced
residents in every big  Well-known
city in Portugal
brand

Not that many
different
products
http://www.aldi.pt/aldi_tama
ra_281.html
Just like Biscotto, Tamara is a brand from Aldi so they’re also pretty low priced. They’re selling
cookies and some small cakes. Aldi is active on Facebook and they have a really good website.
As we can see, there are a lot of indirect competitors, but none of them produces something that
is the same like the stroopwaffles. Considering this, there will surely be enough space on the
market for us as we are differentiating from our competitors. Because we are exporting a
premium product, we should look for the more higher-priced bakeries to export to, otherwise our
product wouldn’t get sold.
20
6. BUYING BEHAVIOUR
Portuguese people give a lot of importance to whether or not the product is home-made or not.
According to our survey, and assuming this is a gourmet product, the inquiries think that the
price should be between 2 and 4 euros.
Also according to the survey conveyed, Portuguese people believe that this product would be
more successful if sold in local bakeries and higher range supermarkets because they believe
that those are the best places to reach our target group. This fact is a great opportunity to our
product because the gourmet shops market is growing.
The inquiries also saw our product as a good fit to the Portuguese market because the
population drinks a lot of coffee and the product would be complimentary to the drink.
Our survey was a great tool to understand how Portuguese people think and how they behave
when it comes to buying sweets. In Portugal, buyers are very aware of money and therefore
only a high quality product would fulfill their expectations when it comes to a higher priced
product.
Our target group is set to do their grocery shopping in gourmet supermarkets such as El Cort
Ingles or even in other local supermarkets with gourmet areas. They appreciate high quality
product and they don’t mind to spend more money if it pays off.
7.SWOT ANALYSIS OF THE MARKET AREA
21
Strength:
The company has a big flexibility because in Netherlands there are a lot of providers of
stroopwaffles and a lot of factories that are able to produce the waffles. It is also an advantage
that the tie up of capital is little because they are using the machines of a producing partner.
Because of three different varieties everyone is able to find the favourite flavor of stroopwaffles.
The company is going to produce two different sizes, one with ten stroopwaffles in it and the
other one with one piece. The big one will be distributed with supermarket partners and the
smaller one should be used in local coffees. This strategy helps to get connected with the target
audience.
Opportunities:
“A sweet kiss” is going to be the first stroopwaffle in the Portuguese market. If the company is
able to create a large demand for stroopwaffles it will get in a monopoly position. In Portugal
people love sweets with their coffee and they are open-minded because of that the market is
interested in new products from foreign countries and “a sweet kiss” is going to use this to their
advantage. In the Netherlands stroopwaffles are not known as a present, the company is trying
to create this new use for the products in the Portuguese market. Because of the culture it is
possible to create a large demand and so there is going to be a new tradition among the
Portuguese people.
Weaknesses:
The company until yet is unknown in Portugal and a lot of advertising is needed to change that
and it needs a lot of money. Because the product is produced in the Netherlands it takes a long
time for the product to reach the customer. This is important because it takes a long time to
react on several problems. In addition “a sweet kiss” is a high class premium product and the
people could find them too expensive and it is going to be the challenge to create a preference
for this product.
Threats:
The market of candies in Portugal is really huge and there are a lot of local providers of different
kinds of sweets. So there are a lot of substitution products everywhere. Chains like Starbucks
have not spread out until yet and so it is necessary for the company to negotiate a lot of
different contracts with the local providers. The company has no information about foreign
markets because the product most of the time is used in middle European countries. So it is
hard to calculate exactly and no one knows something about the demand.
22
8. FIRST YEAR OPERATING STRATEGY:
8.1 MARKETING MIX 4 P’S
Product
The company’s product is called Stroopwaffles. It is a type of cookie, similar to a waffle, with
caramel filling.
The product’s name used to be El Beso Dulce but we decided it would be best to change it to A
Sweet Kiss because of the country we are exporting to.
In Portugal there are some rivalries between the Portuguese and the Spanish people so we
thought that if we wanted to get a better acceptance of the product in this market we should
change the name to another language. At first we were thinking about changing it to
Portuguese, but after the survey we did with the target group we are aiming we realised that
people didn’t like the Portuguese translation of the name. After some thought and discussion
the group decided that the English name would be the perfect fit for the product and the
market.
This is a new product in the market we are aiming. It is made in the Netherlands and then it is
exported to Portugal. When it comes to packaging, there are two types of packages so we can
fulfil the market’s needs. There is a 10 pieces package available in higher range supermarkets
and a 1-piece package that will be available in gourmet cafes.
Price
In terms of price we had to think about what is the country’s financial situation. Portugal is going
through an economical crisis which makes buyers pay more attention to what they are buying
and how much are they willing to pay. However, A Sweet Kiss is a premium product, which
means that the prices shouldn’t be very low to show the quality and the identity of the product.
That being said, we thought that a survey with the target group would be a good way to see
how much they are willing to pay for a product like this and so we came up with two different
prices:
23
10 pieces packages: the price for this package would be 3€. This is a high price when compared
to other local cookies and sweets. However, this is a premium product and so people expect the
price to be higher than regular cookies.
1-piece package: the price of this type of package would be 60 cents. This package is going to be
sold in gourmet cafes with a cup of coffee or tea. In this way, we can’t raise the price because
otherwise people wouldn’t buy it and would prefer to buy a different type of sweet.
These prices are in conformity with what the survey showed that the Portuguese population
would pay.
Place
A Sweet Kiss is going to be exported only to Lisbon in the first year of the strategy.
Lisbon is Portugal’s capital and it is the most populated city of the country. It is also the city with
more population of our target group, which is young adults with ages between 24 and 35, with
an urban lifestyle and that are starting their first job.
At first, the product would only be exported to Lisbon. However, in the second or third year, the
production would be extended to other populated cities such as Porto, Coimbra or Braga
depending on the profits and the acceptance of the product by the Portuguese population.
In terms of where the product would be sold, we are only aiming high range cafeterias,
supermarkets and some local gourmet shops. We chose this kind of establishments because it
suits our target group without losing the identity of the brand.
Promotion
In terms of promotion we are doing a social media campaign backed up by outdoors adds.
We chose social media because nowadays people are always connected to the Internet,
especially our target group. With social media we could reach our target group using Facebook,
Instagram and Tweeter. By doing a viral campaign where the consumers could interact directly
with the brand we could create proximity between the brand and the consumer and possibly
gain more consumers.
With the outdoors we would only try to strengthen the message conveyed by the social media
campaign and we would reach more people and bring more consumers to the brand.
To fit our target group, the outdoors would be placed where our target group can be found, as
in metro stations or the city centre.
Our campaign would be done trough out the year, however it would be more active in the first
months of the exportation so we could gain the attention of the consumers.
24
8.2 OUTDOOR INTERACTIVE CAMPAIGN
We are going to put 5 different outdoor prints in the main metro stations. The outdoors are
going to be like puzzles.
In the middle of the print we’ll place the picture of the café that we are going to sell our
products and in the rest of the picture we will put the main characteristics of that area like
bridge, river or lake. In the top of the print we will write “ guess where is it” and in the bottom
we’ll put a hash tag so people will interact by tweeting. We won’t say anything about our
product or service but people will understand that Dutch stroopwaffles entered the Portuguese
market and they’ll want to go to those places and try it.
In the second part of our campaign we’ll encourage people to take pictures of stroopwafel on
the top of the cup of coffee and put in on instagram, facebook and twitter. And then there will
be a competition of the best pictures and the winner will get 200 boxes of Dutch stroopwafel.
We will also give facebook adverts to catch our main target audience and ask people “Have you
ever tried Dutch stroopwaffles?”
9. OPERATIONAL BUDGET
9.1 CASH FLOW STATEMENT
25
9.2 MONEY NECESSITY
26
9.3 BREAK EVEN POINT
27
9.4 FINANCIAL CONCLUSION
All of the entrepreneurs have also another business running along with “A Sweet Kiss”. This
explains the little investment amounts. Company’s entrepreneurs have decided to use all of the
profit to the company’s development. They have hired only one employee to work as a
marketing director. They are not going to payout entrepreneurs’ salaries in the first business
years. That is why the company’s money necessity consists on costs of production, shipping and
advertising.
Products are shipped two times a month because of the expiry dates. In one delivery company
exports 3360 stroopwaffel boxes and 3500 pcs separately packed waffles. Shipping is made by
ship. Sales are estimated to increase 5 % per year as well as production costs. Result budget for
next four years is forecasted in a cash flow calculation.
Products are going to be sold to several Portuguese upper class supermarkets and cafeterias. All
together products will be sold in 12 supermarkets and 5 cafeterias. One box of waffles should
cost 3 € to the costumer, and the company sell it for 2 € each box. The packet which is sold in
cafeterias, includes one waffle and should cost 60 cents to the customer, the company will sell it
for 40 cents each piece.
The company will take a 21.000 € bank loan in the beginning of the business on top of its own
equity of 10.000 €. Money necessity is specified in a money necessity plan. Money necessity and
income are 31.000 €. Loan is paid back in ten payments, 2100 € per year.
To calculate the break-even point of the company, we took the average of both of our products
to see when the company is going to make profit. When the company reaches the number of
122.609 Products, it will start to make profit.
In fact the company has to sell 336 pieces a day to make profit. If everything is going like the
company decided (490 pieces a day) the break-even point will be reached after 250 days.
28
10. CONCLUSION AND RECOMMENDATION
To conclude the analyzed findings of the report, it is important to emphasize first of all the
proposition that the name of the company should be changed when intending to enter the
Portuguese market. A conducted field survey and additional cultural research revealed that
Portuguese people would prefer an international name for a foreign product as the prior
Spanish name implicates that the production of the product also takes place in spain.
Furthermore, the intended English name which has been suggested by the management of the
company “Amsterdam Good Cookies” turned out to have for the majority of the people to have
a negative connotation. One of the first aspects that come to mind of the people when they
hear or look at the name is the typical stereotype of a Dutch hash brownie. Therefore it has
been decided that translating the name into “A sweet kiss” is the most preferable option.
While researching the given opportunities with regards to export locations, Lisbon has been
estimated as the most profitable and attractive location within Portugal due to great amount of
residents who belong to the highest income bracket. Consequently, Lisbon offers the greatest
target market for the company and in addition has the widest variety of marketing
opportunities.
In addition, the competitive environment and buying behavior of the target market has been
analyzed. Results which have been produced during the process are that beside the fact that
Lisbon already offers a substantial amount of Gourmet supermarkets and high class bakeries, no
similar products are existing on the market yet.
With regards to the financial statements, the most important fact to point out is that the breakeven point for the company will be reached at 122.609 units. When observing the operational
entry strategy, the product will strive to be a successful implementation in the Portuguese
market.
29
REFERENCE LIST
benoitbakery.
(2011).
Retrieved
on
http://www.benoitsbakery.com/
Business
15.
March
2014
from
www.benoitbakery.pt:
Culture. (2012). Retrieved on 16. March 2014 from www.businessculture.com:
http://businessculture.org/southern-europe/business-culture-in-portugal/business-etiquette-inportugal/
Economy Watch. (2013). Retrieved on 15. March 2014
http://www.economywatch.com/world_economy/portugal
from
Expatfocus. (2011). Retrieved on 17. March 2014 from Portugal
http://www.expatfocus.com/expatriate-portugal-business-culture
www.economywatch.com:
-
Business
Culture
:
geerthofstede. (2011). Retrieved on 17. March 2014 from www.geerthofstede.com: http://geerthofstede.com/portugal.html
Index
Mundi. (2013). Retrieved on 16.
http://www.indexmundi.com/portugal/
pasteisdebelem. (2011). Retrieved on 16.
http://www.pasteisdebelem.pt/en.html
March
March
2014
2014
from
from
www.indexmundi.com:
www.pasteisdebelem.pt:
World Business Culture. (2012). Retrieved on 17. March 2014 from Doing Business in Portugal:
http://www.worldbusinessculture.com/Business-in-Portugal.html
World
Factbook.
(2013).
Retrieved
on
14.
March
2014
from
https://www.cia.gov/library/publications/the-world-factbook/geos/po.html
www.cia.gov:
30
APPENDIX
REPORTING SURVEY RESULTS
"What customers think about ‘El Beso Dulce’
Were surveyed
Target audience
I would like
to be it more
Think the
crispy
product is a gret
4%
addition to
cafetaria s stock
20%
It's a bit too sweet
8%
How do you like the flavor ?
I like it
60%
I don't like it
8%
31
Is it a good name?
The name doesn't
really matter
Would like an English
4%
name because it's an
international product
4%
Should
follow the
language of
the
importing
country
4%
Doesn't mind that
it is Spanish and
likes the name
48%
Suggested to turn it in
english "a sweet kiss"
because
Portuguesepeople like
foreign products
40%
How much do you think it costs for 9-10 pcs
5 to 6 but would
not buy it
4%
not more than 5
4%
3 to5
8%
6 to 9 Euro
12%
1 to 3 Euro
44%
4 to 6 Euro
28%
32
EVALUATION MULTICULTURAL TEAMWORK
When encountering the challenge to perform in a team which is has been formed in an
intercultural setting, it is of utmost importance to show understanding for the approaches of the
different nationalities.
Regarding the cooperation of our team, all involved team members agreed that they enjoyed
working together and considering the outcome of the work it must be emphasized that the
team performed in an effective manner.
Effective prior planning belongs to the key requirements that guarantee a chance of success
when operating in an international environment. While different cultures comprise different
concepts for time and collaboration, it is crucial that for the time of cooperative participation,
every member understands the guidelines which are set and to follow them accordingly.
In addition, another major condition for a successful performance is the division of tasks
according to the specialties of each student. Almost all participating universities are specialized
on a different field which can be utilized when engaging in cross-national teamwork.
Consequently, our team devised tasks and functions according to the specific fields of
knowledge of each student. In addition, a time plan has been designed on what date everybody
has to hand in the specific tasks.
Different concepts of money and value were also of concern when devising the appropriate
strategy to enter the target market as various nationalities have a different perception for the
value of a product. While finish people might assume a certain price for a product would be
cheap or fair priced, Portuguese and polish students perceive the assumed price as expensive
and overprized. Therefore it was important to discuss all relevant factors of the entry strategy as
a team.
Nevertheless, with all the mentioned planning and forecasting, it is of greatest concern to
respect the values and onions every team member contributes to the project which can be seen
as the greatest enrichment for each individual with regard to the learning experience.
At last, it is important to conclude what has been the consequential learning experience during
the IP for the students. As for many students, their universities mostly operate in a very local
and national environment, meaning that only a small number of international students
participate in group assignments. However during this Intensive Program, students from
different nationalities were asked to work together on an assignment which helped each
participant to individually work on his/her cultural understanding and ability to cope and
collaborate in a professional environment with members from a variety of cultures. The project
is a beneficial experience for all involved parties and has perceived widely as a great
contribution to everybody’s academic future.
33
34

A sweet Kiss – Business Plan

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