International Business: Switzerland Market Entry Feasibility Report

This report presents a comprehensive analysis of the Swiss market for international business expansion, focusing on the feasibility of introducing an FMCG company, 'Pick,' specializing in balanced food items. The report begins with a rationale for choosing Switzerland, highlighting its low tax rates, high GDP, skilled labor, and global competitiveness. It then details the company's profile, including its product line of balanced foods, frozen yogurt, and coffee, along with its unique selling proposition of providing freshly prepared, nutritionally balanced meals. The report delves into market segmentation, including geographic, demographic, behavioral, and psychographic factors, identifying health-conscious individuals, sportspeople, and working professionals as the primary target audience. It explores product adaptation, packaging, and pricing strategies, emphasizing the importance of adhering to Swiss regulations. The report also covers advertising and promotion strategies, HR management, and staffing frameworks. Finally, it concludes with a summary of opportunities, challenges, and recommendations for a successful market entry, emphasizing the need to comply with local regulations and focus on innovation to attract the target market. The report includes references to academic sources.

INTERNATIONAL BUSINESS
Name of the Student
Name of the University
Author Note

Why Switzerland?
• Switzerland is comparatively cheaper in terms of tax rates
• The annual GDP is higher in Switzerland.
• Lower employment rat
• Switzerland is a globally competitive country
• No civil or political unrests
• Inflation rate is also low
• Since population is educated, skilled labour is expected

Pick Company
• Pick is a FMCG company based in the city of Kuwait
• Established in the year 2011
• A new branch was introduced in AUM in 2014
• In 2015, four branches were opened in Alsalam, Qortuba,
Shwaikh and Sea view
• Product : Balanced food items, PICKYO (frozen yogurt),
PICK Coffee and other nutritious food items

Pick’s Balanced Diet
• Main Unique Selling Proposition is providing of Balanced Food
• Balanced food is served by Pick which are freshly prepared
• The nutritional value of each food item is clearly displayed in
the shops
• It is ensured that the food sold is high in protein, fibers and
vitamins while low in fat, sugar and calories
• It possess balanced caloric ratio

Products In Line

Mode of Entry
• Availability of natural resources and raw materials
• Less trouble in business registration due to strictly
followed laws
• Has A1 financial rating, so profits will be made fast
• High standard of living, thus more importance on
healthy food and lifestyle
• It is a federal republic country

Mode of Entry (Contd.)
• Customers may not be willing to pay for the food
• The currency is mostly overvalued
• The exports are based mainly on watches, gold and medicines
• Imports machinery and metals, thus more money required to
start a business

Geographic segmentation
• Switzerland, country in Europe.
• Location: central Europe, South of Germany, east of France
and north of Italy.
• Largest city: Zurich.
• Total area: 41,285 square km.
• Population: 8.5 million.
• A multifaceted cuisine.
• Follows nutrition-based therapy.
• People are health conscious.

Demographic Segmentation
• Age – Infant and teens (0-14 years; 15.09%)
• Age – Female (15-65 years)
• Age – Male (20-70 years)
• Income – an average gross household income is 9,946 francs
per month.
• Lifecycle – families, business people, homemakers, single
working individuals.

Behavioural segmentation
• Swiss people possess the tradition of Western European
mentality. It is deeply rooted in their minds based on the
concepts of freedom, liberalism, pluralism and secularization.
• They have the love for smallness. They resent anyone who
boasts of greatness.
• Strong belief in hedgehog mentality since The World War II.
• They are loyal to their roots and culture.
• Precision and perfectionism are the major ingredients to
celebrate Swiss quality.
• Being punctual and well disciplined are highly praised.
• Swiss are still very popular for their highest saving rates along
with appeals to cut public spending.

Psychographic segmentation
• Switzerland is a multicultural as well as multilingual country.
• This country also tops the rankings for high standards of
lifestyle and wellbeing.
• For deciding over a purchased item, they are more of a ‘value
for money’ people rather than being brand conscious.
• Swiss people are the largest consumers of organic products
and their demand is probably the highest in Europe.
• In spite of the growing popularity of e-commerce websites
and online shopping, they still prefer off line shopping.
• They spend more on healthy, eco-friendly and better quality
products.

Customer Profile
• The main targeted people will be the health conscious
people of Switzerland
• The people who love to have a balanced diet will be
targeted
• Sports persons and young adults will be the primary
target
• Working professionals can also be targeted to relax in
their busy work schedule