International Marketing Management

Introduction

International marketing management is a quick-changing field where companies work hard to spread their business all over the world’s markets (Doole, Lowe and Kenyon, 2019). In the case of Central Furniture Manufacturing (CFM) Ltd. growing into the Swedish market, this study looks deeply at key parts related to entering a market, worldwide patterns and country-based messages. Checking all choices for entering the strategy starts with trying a straight deal with ICA Gruppen, which is a big supermarket chain in Sweden. The main problem is identifying important worldwide trends linked to CFM’s brand proposition and whether they can be used locally. Looking at STP strategies (segmentation, target and positioning) helps understand the mix of Swedish customers. The marketing mix and channel plan help to teach, connect with, and change customers. Ultimately, the choice of social media channels for communications is wholly based on cultural thoughts that match Swedish consumers. A multidimensional approach shows the need for a global marketing plan made to fit with Sweden’s unique features.

Market Entry Strategy

CFM’s possible deal with ICA Gruppen, one of the biggest supermarket chains in Sweden, requires looking at everything affecting market entry strategy. The Swedish market also has many differences and unique issues that need more focus. A safe political situation in Sweden will give CFM a good start in joining the market. With a steady political climate, businesses do not need to worry about policy changes or a shift in regulations (Sousa, 2022). They can concentrate on their business without many disruptions. But CFM must always be ready and closely monitor any political changes that could affect business, trade laws or how countries relate.

The robust furniture industry is less seriously hit than the rest of Europe. Projected to achieve revenue of $8.79 billion in 2023, with an estimated compound annual growth rate (CAGR) of 4.81 % for 2023-2028, the market also has significant potential to thrive here. But the fear of excessive inflation makes CFM a red flag. Pricing strategies must also consider inflationary pressures on consumers ‘purchasing power (Dibb et al., 2019). Financial factors are not the only consideration, of course; pricing models have to be carefully evaluated. From a competitive perspective, IKEA, being from Sweden, says it is all about just how fierce the furniture market in the country is. However, CFM has no choice but to claim its territory to survive in this cutthroat environment. By using modern furniture designs that are sure to appeal to consumers and maintaining a distinctive competitive edge, they will leave the competition in the dust. Even with ongoing global shortages and transportation difficulties, CFM must build flexibility and robustness into its operations.

The choice of ICA Gruppen as a partner for special rights is in line with Sweden’s export-focused economy. CFM’s use of a big supermarket chain delivery system shows its strategic positioning. This helps to make the market bigger and lets people buy products more efficiently. However, how well this plan works relies on getting good terms in an agreement. This makes sure both sides get the best outcome. Learning about Swedish customers is important for CFM’s success and staying alive in the market. Swedish consumers are people with a keen awareness of their immediate surroundings, such as purchase options and present conditions (Brege et al., 2022). CFM needs to study markets well so they know what locals like. Furniture designs should not be cut off from Swedish life and must fit well in homes where they will stay for a long time.

Swedish consumers are savvy, and tying products to their needs and tastes is the only way to succeed (Thelen, 2019). CFM could consider partnerships or collaborations with local designers to establish a closer connection with the target market to see how much culture can be added to the replaceable design. The direct arrangement with ICA Gruppen means control and responsibility for abiding by local regulations, cultural delicacies and consumer tastes. CFM must have a solid legal structure and comply strictly with Sweden’s business ethics to cope with possible difficulties.

Global Trends and Their Application in the Local Environment

Trend 1: Sustainability in Furniture Manufacturing

Sustainability has become the most critical issue for consumers worldwide, while its overlap with CFM’s brand proposition is a key factor. CFM can lead in sustainable furniture manufacturing because of its family-run nature and specialisation in high-quality, ready-assembled furniture (Brege et al., 2022). Environmentalism is one of the most significant trends in today’s consumer society, and CFM belongs to this sector.

In Sweden, sustainability is integral to Swedish culture and consumer consciousness. Swedish consumers seem very aware of and supportive of eco-friendly practices in qualitative data. Surveys and market research have found that many people attach great importance to sustainability in their buying choices, especially concerning furniture (Feil et al., 2022). This is also supported by the rising number of requests from various industries for products featuring eco-labels and certifications guaranteeing sourcing and production sustainability.

CFM must maintain and strengthen its sustainable efforts to conform to this trend. The firm can consider using recycled materials in the manufacturing stage, utilising energy-efficient technologies or adopting a ‘green’ supply chain from end to end. Such efforts must be communicated transparently through marketing materials, product labels and the company’s website (Borg, Mont and Schoonover, 2020). This will make CFM even more attractive to Sweden’s environmentally conscientious consumers.

With the Swedish market in mind, a recommendation for CFM is to pursue established sustainability certifications. An example would be certification by organisations such as the Forest Stewardship Council (FSC) or Nordic Swan Eco-label, which could demonstrate CFM’s environmental consciousness. Not only is this move likely to add immensely to the company’s credibility, but it could also serve as a unique selling point in a market where consumers demand eco-friendly options.

Trend 2: Rise of E-commerce and Direct-to-Consumer (DTC) Channels

The growth of e-commerce and the increase in direct-to-consumer (DTC) channels are two important changes in retail. Now that the new family companies are directing it towards European markets, online selling is becoming more popular for CFM.

Looking at Sweden, the shift to online shopping and direct-to-consumer channels is not just starting; it has become a reality. At first look, it is a growing online furniture business. People are changing what they like to buy because digital platforms are proving irresistibly attractive (Gunnarsson and Mignot, 2023). Many people in Sweden use the internet and shop online, so CFM is a perfect place to take advantage of this new change.

CFM needs to increase its online presence to benefit from this trend. This means putting money into a website that is easy to use and mobile-responsive. This way, online shopping is as easy as possible. CFM works on making itself more visible on the internet by using ads aimed at certain people and talking with and getting feedback from customers through social media sites. Also, a good and easy DTC channel is needed to make the tech-loving Swedish consumer happy, paying particular attention to safe payment methods and easy shipping (Hillerborn and Eriksson, 2022).

CFM should think about trying new ideas for online marketing. One of these could be a virtual showroom or an experience with augmented reality. These tools can give customers a better online shopping time, offering them what they want when buying furniture from far away. Also, special online ads, rewards for loyal customers and methods only found online encourage people to choose CFM’s direct-to-consumer channel over others.

Country-Specific Communications

(i) Segmentation, Target, and Positioning (STP) Strategy for Sweden

Understanding the local area is important for making a Segmentation, Targeting and Positioning (STP) plan for Central Furniture Manufacturing (CFM) in Sweden. It means studying consumers’ points of view on their likes and interests, how they see things, attitudes and cultural differences, and how they feel about technology.

Segmentation

Sweden’s broad consumer base demands a rational approach to the segmentation of markets (Romppanen, 2021). CFM can segment The market based on demographic, psychographic, and behavioural factors. Age groups, households with different income levels and household sizes can all be considered. The psychographic factors include lifestyles, attitudes and values. Behavioural segmentation is segmenting according to purchasing behaviour or preferences for pieces of furniture.

Target

Given the breadth of products CFM offers, it is right to spread out to a broad audience across different demographic and psychographic groups. But, because CFM is being transferred to the next generation of entrepreneurs, there may be a specific emphasis on the younger demographic. The group between the ages of 25 and 45 is likely interested in modern and contemporary styles. Also, people with moderate to high incomes fit CFM’s high-quality, ready-assembled furniture positioning.

Positioning

CFM’s positioning in the Swedish market should emphasise its key strengths: fine-quality, premade furniture with exquisite design well suited to the home. Similarly, the business’s family-run nature can help add realism and personalisation to positioning. Adding the element of sustainability, as concluded in the previous analysis, may strengthen CFM’s positioning even further. Since it conforms to the Swedish consumer’s environmental consciousness, such a strategy would be particularly prudent for CFM to follow.

Table: Segmentation, Target, and Positioning Strategy for CFM in Sweden

Consumer Insights

According to Mintel and Passport GMID data, Swedish consumers are gradually preferring sustainable, environmentally friendly products. Certifications, such as the Nordic Swan Eco-label, are and must be meaningful; they allow consumers to choose products that fit their conception of responsible environmentalism. Furthermore, these sources provide insight that Swedish city dwellers–especially those in Stockholm and Gothenburg–value convenience and utility more than beauty in furniture. Simple, space-saving designs are suited to modern living environments. The cultural aspects, including the emphasis on craftsmanship and authenticity, are also essential to understand. Swedish consumers prefer products with a story, and the family-run business heritage of CFM can serve as an important selling point (Ahi et al., 2017). Regarding technology, most Swedes are digitally connected, making online channels a significant point of contact with the target group. With e-commerce platforms, social media and interactive online experiences, CFM becomes more visible and accessible to tech-savvy consumers.

(ii) Marketing Mix and Channel Strategy

Product

CFM’s product mix in Sweden should focus on top-grade furniture assembled at the factory to suit modern living spaces. To match consumers ‘tastes, sustainability features should be emphasised, including using sustainable materials and certifications.

Price

CFM’s high-quality and sustainable furniture ought to be priced attractively. While offering a variety of price points does vary the income levels which can be reached within the target demographic, it still allows accessibility without compromising quality.

Place

Channels of distribution include the creation of partnerships with ICA Gruppen, an active retailer in Sweden, so that CFM products are sold on the shelves. At the same time, focusing on an e-commerce platform is vital to capture the expanding market for online furniture shopping.

Promotion

Attempts to promote the product should focus on letting consumers know that CFM is a family business with an authentic, sustainable line and versatile designs. This is where marketing channels come into the picture.

Marketing Channels

Incorporating diverse service offerings, the marketing channels for CFM in Sweden make up a broad strategy to educate, involve and turn consumers. One will be a user-friendly e-commerce platform with direct sales that meets the online shopping tastes of customers. Social media marketing on sites such as Instagram and Pinterest will present realistic settings where customers can see CFM’s high-quality, ready-assembled furniture in living colour; moreover, it offers possibilities to interact with the design by sharing design tips, having stories told about sustainability and greening the environment through our products or even collecting customer testimonials. Influencer collaborations with Swedish influencers in tune with CFM’s ideology will enhance brand awareness and impart credibility and social proof. Joint ventures with established Swedish furniture retailers secure a physical presence in strategic positions and serve consumers who prefer to shop face-to-face (Aaker and Moorman, 2023). They have a different mix of online and offline channels. They are carefully selected to reach a large audience because they fit Swedish consumers’ other preferences and consumption behaviours.

Reasoning for Channel Effectiveness

In Sweden, the marketing channels chosen by CFM are also effective due to their broad reach, educational potential and engagement opportunities. From a market standpoint, Swedes ‘tastes and shopping styles are numerous (Hånell et al., 2020). CFM wins on all fronts by using online and offline channels to reach its audiences as widely as possible. An easy-to-use website and presence on social media aid education promotion. These channels provide opportunities to talk about the sustainability of CFM’s furniture, that it is a family-run business, and that it is ready assembled, all of which are essential factors in consumers ‘purchase decisions. Social media and influencer collaborations are building blocks of this sense of community, consumer loyalty, and trust. The direct interaction afforded by these platforms means real-time communication and response; this greatly enhances the consumer experience. Second, retail partnerships strengthen online functions by setting up physical outlets in critical locations and serving those customers who prefer to make purchases face-to-face (Sousa, 2022). The layered combination of channels being put in place is intended to provide the most comprehensive coverage of CFM possible. It necessitates a cooperative and tailor-made strategy to take the consumer groupings already recognised in Sweden.

(iii) Social Media Communications and Cultural Adaptation

Social media communications also have to be adapted to the Swedish market. This means understanding the profile found for a consumer. With this in mind, our Swedish bureau must be simple and matter-of-fact about its social media content. CFM’s furniture in Swedish homes For example, on the Internet platform Instagram, the visual content should be based on clean lines, simple forms, and practical applications, not just leave it to a room of concepts. In addition, sustainability communication has to be culturally appropriate. The importance of the green aspects of CFM’s furniture corresponds with Swedish values, but the message needs to be just the right level to get maximum impact (Laurell and Sandström, 2017).

Communication is critical, and language is the key. English is understood in Sweden. However, social media postings, including some Swedish language, especially for captions and engagement, will add a feeling of belonging. This demonstrates an effort to communicate naturally with the local audience. Also, adapting content means being well-versed in local holidays, activities and cultural allusions (Felix, Rauschnabel and Hinsch, 2017). For instance, a midsummer celebration or winter cosiness (hygge) can make a more genuine, culturally based social media presence.

Conclusion

CFM’s entry into Sweden requires a global marketing strategy involving choices of market entry mode, the development and realignment of products to match international trends and cutting-edge technologies, and culturally adapted communications. ICA Gruppen is arranged directly, taking advantage of local market dynamics, which require detailed negotiation and adaptation to Swedish consumer tastes. The trends identified by the sustainability of our planet and the rise of e-commerce fit perfectly with CFM’s brand proposition, which calls for changes in product positioning and marketing channels. The STP strategy (segmentation, targeting and positioning) illuminates the Swedish consumer landscape, telling CFM when to prescribe medication. A multichannel marketing mix featuring online and offline channels offers full coverage, while cultural adaptation in social media communication improves relatability. Tailoring this many-sided approach, CFM puts itself in a prime position to succeed by entering the market and having its brand sewn into the fabric of Swedish consumer tastes and market rhythms.

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