Index

Executive summary

Preface

Chapter 1 Company description

        §1.1 Company policy

        §1.2 Strategic marketing policy

        §1.3 SWOT-analysis and confrontation matrix

        §1.4 Strategic issues

Chapter 2 Internationalisation

        §2.1 Choice of internationalisation

Chapter 3 Export audit

        §3.1 Internal feasibility

Chapter 4 Company’s point of view

        §4.1 International PMC

Chapter 5 Country analysis

        §5.1.1 Country selection model

        §5.1.2 Country analysis Italy

        §5.1.3 Culture analysis Italy

        §5.2.1 Country analysis France

        §5.2.2 Culture analysis France

        §5.3.1 Country analyse Finland

        §5.3.2 Culture analysis Finland

        §5.4 Chosen country

        §5.5 Legal aspects

        §5.6 Market research

Chapter 6 Target group selection

        §6.1 Defining target groups

        6.2 The customer profile

Chapter 7 Tactical Plan

        §7.1 Entry strategy

Chapter 8 International marketing strategy and marketing mix

        §8.1 Proposal adjustment marketing mix

        §8.2.1 Marketing communication activities

        §8.2.2 Commercial texts

        §8.3.1 Commercial prognosis

        §8.3.2 Best case scenario

        §8.3.3 Worst case scenario

Chapter 9 Financial foundations        

Conclusion

List of literature

Appendix

  1. Spanish PEST-analysis Finland
  2. Spanish executive summary

Executive summary

Since the establishment of the business Thuisbezorgd.nl in the year 2000, it was a enormous hit in the Netherlands.  In 2003, three year after the foundation, the company obtained great successes. Because of the major successes of the company in the Netherlands, the decision is made to write a report which contains an advice for Thuisbezorgd.nl of doing business in a foreign country.

Thuisbezorgd.nl, the successful online food-delivery company in the Netherlands has been a huge success ever since the establishment. The online food-delivery company has contact with many food-delivering restaurants. When a customer orders food online, Thuisbezorgd.nl gives the order to a restaurant which the customer has chosen, then the restaurant sends an employee to deliver the online ordered food.

The rapport will contain country analyses from France, Italy and Finland. These analyses are important because of the different cultures in the three different countries. The country with the culture most likely to make a successful online food-delivery business will be chosen, further on in the rapport it will be based on the chosen country. The decision will not only be based on the culture, except for that it will also be based on the economy, demographic statistics and the country’s law of that country.

The country which shows the best chances to success for Thuisbezorgd.nl is Finland. The culture of Finland and the Netherlands looks a lot alike. Finland also has a strong economy and the law is not a barrier to the establishment of Thuisbezorgd.nl in Finland. Italy and France showed not such a good possibility to success as Finland did. The two countries have a totally different culture which will make it difficult for Thuisbezorgd.nl to gain success, because most citizens in France and Italy pay a lot of attention to the food they eat and make. In Italy citizens cook much, restaurants are not visited much. In France the restaurants are visited much, but the French restaurants belong to the best worldwide, and French citizens often want to go to restaurants themselves, instead of ordering food online.

For establishing Thuisbezorgd.nl, two marketing strategies will be used. The first will be market penetration, and the second will be the pull strategy. With these strategies, we want to penetrate the Finnish market, discover new prospects, make the offer attractive for the customers, elevate the turnover per transaction, service and customer satisfaction, reach and convince the prospects, the prospects to use our service instead of contacting a local restaurant or another online bidder and use the AIDA-promotion method.

With the analyses, made in the rapport, we hope to have given good advice for the company to eventually establish the company in Finland.

Preface

This report is prepared for Thuisbezorgd.NL to launch their company successfully in another country. Based on the country analysis we came to the conclusion Finland meet all the criteria’s in order to be successful abroad. This plan contains all the steps for Thuisbezorgd.NL, so they will be fully prepared to do business and cover all calamity that might occur in Finland.

This report contains the following items:

  • Chapter 1 gives a description of the company by enhancing the company policy set, strategic marketing policy, SWOT-analysis, a confrontation matrix and the strategic issues.

  • Chapter 2 gives an explication of the choice of internationalisation.

  • Chapter 3 is the export audit; the internal feasibility in terms of organisation, culture and strategy.

  • Chapter 4 formulates the international PMC.

  • Chapter 5 contains the country analysis’s of Italy, France and Finland. The legal aspects and market research are recorded in this chapter too.

  • Chapter 6 defines the target groups and gives a description of the customer profile.

  • Chapter 7 contains the tactical plan to select the entry strategy.

  • Chapter 8 contains the international marketing strategy to help Thuisbezorgd.NL to launch and promote its company successfully in Finland. We reckoned with a worst and best case scenario of the first 3 years.

  • Chapter 9 gives the financial illustration of the costs of this plan when it is implemented.

We would like to thank Luuk van Leeuwen and Victor Cabral for their expertise and feedback for making it possible to complete this plan. We would also like to thank InHolland for giving us the opportunity to make a informative plan.

Tommy Akondo

Ruben de Wilde

Maida Cviko
Jihane el Marini        

Rock Mityaniq

Don Kartopawiro

Sandra Vitasovic

Diemen, June 2009

Chapter 1. Company description

§1.1 Company policy

Thuisbezorgd.NL is a company that plays a intermediary role and provides customers (B2C & B2B) to order quickly via the internet from several restaurants. The company has been established in the year 2000 by a student named Jitse Groen. Back in that time, he financed the company with his earnings from his other company called Grib.

Meanwhile, Thuisbezorgd.NL has become one of the biggest e-commerce sites of the Netherlands. Recently Thuisbezorgd.NL won a home shopping award. The website nearly occupies a monopoly position in the field of ordering food online. Jitste Green wanted to add something else to the assortment, such as wine. But unfortunately it wasn’t a big success, because the customers expected that the wine should be delivered within 45 minutes. This was not realistic, so he cut the idea off.

A total of 1200 restaurants joined Thuisbezorg.NL, but especially in Amsterdam and Rotterdam the offer is very good. The offer in little cities is very limited, because the amount restaurants with delivery services is not big.

If a customer places an order on the website, it is Thuisbezorgd.NL’s responsibility to send this order within 3 minutes to the restaurant. Usually this goes by fax. A computer system rings the restaurant to acknowledge the order.

The amount of competitors is very limited in the Netherlands. Sites such as Urbanbite.nl and Justeat.nl are not that big and successful in comparison with Thuisbezorgd.NL. According to Jitse Green, the company has gained a market share of 90 per cent and they only receive 1 euro each order. The company has wittingly chosen not to use percentages, because it’s a high risk that restaurants with higher prices don’t want to share their menu cards.

20 till 30 per cent of the Dutch orders are paid in advance via banks with a program named iDeal. That’s pretty much, because people pay 1 euro per transaction to use this tool. But it’s much easily than paying in cash. Almost 1/3 of the total ordered dishes are delivered to companies. For this reason Thuisbezorgd.NL added a new element named ‘’the boss is paying’’ and the employers receive monthly a total invoice.

Thuisbezorgd.NL is currently active in 5 other countries; Belgium (Pizza.be), Germany (Lieferservice.de), United Kingdom (Pizza.co.uk), Austria (Lieferservice.at) and Denmark (Pizza.dk). In the United Kingdom is the offer for ordering diversities through websites very limited. The ‘’biggest’’ takes hundreds of orders per day. One of the biggest competitor is Hungryhouse; winner of the TV-program Dragon’s Den. But the phenomenon ‘ordering via internet’’ is even in London quiet new. That’s a big opportunity for Thuisbezorgd.NL. There is a lot of space to penetrate the market; the same goes for Germany. In Denmark they have the advantage that the inhabitants are used to pay with the tool Dankort; a credit card which is also effective to make online payments. 60 per cent of the orders are paid with this card.

In 2008 the website took about 30 million orders and is, as mentioned active in 5 other countries. Thuisbezorgd.NL is expecting a strong growth despite of the credit crunch.

§1.2 Strategic marketing policy

Current situation

Thuisbezorgd.nl is a food-delivery site where you can place a order for a meal from different delivery restaurants within certain radius in your region. The company is from  origin Dutch and was founded in 2000 by a student. Currently it is the biggest food-delivery site of The Netherlands. Because of the huge success in The Netherlands, thuisbezorgd.NL decided in 2007 to go international.
They started with Belgium (pizza.be) and Germany (lieferservice.de), shortly after that they expanded to Austria (lieferservice.at).

Last year they have also launched a food-delivery website in Denmark (pizza.dk).
Later that year they consider England and the growing potential and decided  to expand to England as well. The main reason was that England does not have a lot of food-delivery sites.
First of all they want to focus on the big cities like London because the market is huge and it is a big opportunity for thuisbezorgd.nl.  

Future prospects

Thuisbezorgd.nl wants to globalise in the future. Finland and Luxembourg are the potential countries where they could launch their company. They are already successful in five other countries, so this is just another step forward for thuisbezorgd.nl.
A research on Finland and Luxembourg and the possibilities to export to one of these countries will be done. The outcome of this research will clarify whether there is any potential for Thuisbezorg.NL or whether it is going to be a failure. Our priority in this research will be the culture, supply and demand and E-business (online shopping).

Strategic marketing policy

The strategic marketing is a long term policy. This contains matters like the portfolio choices, the positioning, target choice, the marketing mix and the price policy.

It is very important to set goals and achieve good results. All these matters are interdependence.

The first matter in the strategic marketing policy are the portfolio choices that are made.
The current portfolio choice of Thuisbezorgd.NL is a BCG-‘ growth-share’- matrix.
This portfolio matrix shows the market grow and the attractiveness of the market.
At the other hand you can also see the relative market share of the company.
There are four sorts of SBU’s in the BCG- matrix, the stars, cash cows, problem children and the dogs. Thuisbezorgd.nl is a Star. A Star is a product that has got a high market share on a strong growing market. The used and needed cash is high and in balance. A Star is also known as a market leader.
When the growth of the market decreases, then the Star can turn into a cash cow.
This BCG-matrix is working well on the Dutch market. But if Thuisbezorgd.NL wants to expand to other countries; they should implement the Ansoff-matrix. Because they are going to operate on a new market. This strategy of Ansoff is called market development .
The company is aiming for a growth on a new market with existing products.

The positioning and target group of Thuisbezorgd.NL
Thuisbezorgd.NL  has a good image and is well known in The Netherlands, especially among young people like students. The company is known as a food-delivery site where you can place a order on a quick and easy way at every moment of the day. The image of Thuisbezorgd.NL is quick, easy and convenient. The company has not chosen  conscious for one particular target group. With this image they are approaching a target that does not have a lot of time to cook.  In Holland there are a lot of young people like students who order here because they don’t want to cook or have not got time for it; but also families with children and singles who have a busy life. If you ask somebody in Holland something about ordering meals, the majority will answer Thuisbezorgd.NL.
Thuisbezorgd.NL is immediately associated with ordering meals online.

The positioning strategy that Thuisbezorgd.NL uses, goes by the name of
transformational positioning. This strategy is also known as the lifestyle or image positioning. It is all about the behavior and the lifestyle of the target group, people who like convenience, people who don’t like to cook, people who simply haven’t got time to cook.  It’s quick, easy and convenient.


The marketing mix

Product
Thuisbezorgd.nl offers you online all the restaurants within certain radius in your neighborhood where you can order meals. It is not a real product, it is more a intermediated role they play between customers and restaurants.

Price
The prices on the site are the prices of the restaurants where you can order your meals.
The prices are very differently. It all depends on by which restaurant you order. It is all up to the customer who is ordering. Thuisbezorgd.NL earns 1 euro on each order that is made.

Place 
It is an E-Commerce company so it does not have physical shops. The only selling point is the website through the internet.

Promotion
Thuisbezorgd.NL has not got a big promotion campaign but is although making promotion.
The majority of promotions are made on the internet, advertisements on the internet, billboards and in magazines. But also by the restaurants that which deliver the food.

The portfolio choice, positioning, target choice and the marketing mix are choices that are made in the strategic marketing policy. They are a real success formula in The Netherlands, but would these chosen matters also work abroad in a different culture?

§1.3 SWOT analysis & Confrontation matrix

This SWOT analysis contains the internal and external analysis of the domestic market.
The internal analysis contains the strengths and weaknesses of the company. In the external analysis is shown what the opportunities and strengths are. Afterwards the SWOT analysis will be worked out in a confrontation matrix. Below is a schedule of the SWOT analysis.  

Confrontation matrix

In the confrontation matrix you will stumble upon the next combinations:

-  Strengths – Opportunities

-  Strengths – Threats

-  Weaknesses – Opportunities

-  Weaknesses -  Threats

Strengths & Opportunities

S3-O1 : You can order quickly online. Nowadays people order more and more online, there is a great need of convenience.

S2- O5: The company is (inter)nationally known, they are active in 5 other countries. Because of this advantage, it would be a great opportunity to take the next step, expand and try to be successful with the same formula abroad.

S4 – O3: Thuisbezorgd.NL is well known and very popular in The Netherlands. It is the biggest food delivery site of Holland. The online business is still growing, they are expecting a strong growth.

S5 – O4: They have a market share of 90% and that is almost creating a monopoly.  

S5 – O2: With a market share of 90% they have a very limited competition.

Strengths & Threats

S2 – T2: The company is (inter)nationally known but there is a possibility that their potential  abroad will be minimized.

S4 – T3 – The company is well known and popular in The Netherlands, but the market is getting saturated.

S5- T1 : They have a market share of 90% but with the economic recession people have less money to spend and will not order that much online.

Weaknesses & Opportunities

W1 – O3: There is not a lot of focus on B2B. The online business is still growing, Focusing more on B2B consumers can be an opportunity.

W2 – O6: There is no warranty for the delivery, because it is outsourced. Thuisbezorgd.NL fulfill an intermediated role. Although they have won the public awards home shopping of 2009.

Weaknesses & Threats

W1 – T1: There is not a lot of focus on B2B. Because of the credit crunch people spend less money and companies still order online meals. They should focus more on B2B.

W3 – T3: The products are only online available and the market is getting saturated. They could offer their products in different ways and not only through the internet.

§1.4 Strategic issues

Before Thuisbezorgd.NL launch their concept in Finland, there are several issues to keep in mind. These issues are highlighted in the SWOT analysis and with the help of this analysis we will formulate the strategic issues.

Only online available  

Thuisbezorgd.NL is a company which provides her service only via the internet. More than 11 million Dutch citizens are using the internet for different affairs, one of them is online shopping. The use of internet has become a way of living. Online shopping has become very normal in the Netherlands, that’s why Thuisbezorgd.NL had a big chance of succeeding in her line of business. When Thuisbezorgd.NL goes international, the main question will be; is online shopping popular and will it also be successful in these countries? If the answer is ‘’no’’ to these questions? What will be the best solution?

Before launching Thuisbezorgd.NL in a chosen country, it is very important to research the possibilities of online shopping and the amount of supply and demand. It is also important to research the cultural aspects, such as; are the inhabitants easy-going (‘’lazy’’) and is the hunger for online shopping big? After this research we can determine if it’s wise enough to do business in this country.


Credit crunch

It’s not a secret that a lot of countries are suffering due to the economic recession, which means that people are more careful to spend their money. Some people are used to go out once a week, but due the economic recession they are inclined to stay at home and eat a homemade meal.

Thuisbezorgd.NL can make a list of ‘’cheap’’ and ‘’chique’’ restaurants, so the customer can decide on their own which restaurant they want to choose. The customer doesn’t feel obligated to choose an expensive restaurant, because Thuisbezorgd.NL offers a broad assortment.

Another solution is to launch a forum on the site, so the customers can exchange their experiences. The power of a forum is very big, because it connects them to other “potential” shoppers. Customers who are cutting back (victims of the economic recession) frequently are looking for validation for their purchase decisions. Online shoppers trust and rely on the experiences of other shoppers to build their confidence to buy the product or to use a service. With the help of a forum they can provide the customers to research the service (is it good or not?) and confirm their choices.

No guaranty for delivery (outsourcing)

The most important aspect of online shopping is the delivery (operational excellence). If the delivery doesn’t goes properly, you can close the doors because Thuisbezorgd.NL is mainly dependent of the deliverance. By setting up a contract for the co-operative companies, they are obligated to meet the agreements. It is also important to create a win-win situation, so the companies will be convinced to do business with Thuisbezorgd.NL.

Chapter 2. Internationalisation

§2.1 Choice of internationalisation

In this chapter we are going to clarify why thuisbezorgd.nl wants to export. Here below are a couple of questions.

Why Export?

Why does Thuisbezorgd.nl need to grow?

What’s the motivation, Reactive or proactive reasons?

The total capacity in the home market is already reached. The company is forced to export due to the competitive environment. While it’s important to focus on quality. The problem is that the competitive environment creates situations where your competition continues to grow - so, if we don’t grow and expand our services the company will lose customers. 

The main purpose of this business is to make money for the people who own the business. All other objectives are secondary to achieving this goal. Achieving this goal means making enough money to stay in the business and make enough money.

The reason of exporting is based on proactive need. In most cases Companies who are proactive in international business are better positioned than companies that simply react. If you simply react you might make a mistake and not do things properly.

The proactive reasons for going international are, that we are seeking for strategically advantages and we want to launch an offensive into a new market before our competitors does.

Chapter 3. Export audit

§3.1 Internal feasibility

Thuisbezorgd.nl the Dutch market leader for in home delivery of meals. Through an easy web-site it is possible for many different meals from a single site to your home. For consumers, this is easy, familiar and innovative. The site offers consumers to eat in more than 1500 delivery restaurants. Pizza, Chinese, shoarma, even sushi, this is all possible on the website Thuisbezorgd.nl

Organization:

The structure of Thuisbezorgd.nl exists of five elements; Namely:

  1. The executing core(The actual work)
  2. The strategic top(The business-units boards)
  3. The supporting services(Service centre, Facility management etc.)
  4. The techno structures(The plans department)
  5. The mid layer(The management between the upper and the lower workforce)

These five elements are the base of the company. From the higher management to the lower working force. This is called ‘’The structures in Five’’ by Mintzberg. This method works well because the different departments have different objectives but they share the same  goals.

Thuisbezorgd.nl is a rather small company. This makes it easy for them to work fast and effective. In combination with these five elements they also use a line-staff organization. This method works effective because there is a middle management who are specialized in keeping control and are using their expertise.

Culture:

Thuisbezorgd.nl is well known for their diversity in the kitchen. Their strategy is also the body for their culture. They have connections with all sorts of restaurants and food delivery services. For instance: The Italian kitchen (Pizza’s, Pasta’s), The Oriental kitchen, The Greek kitchen and etc. The website is technically created so that each region has its own type of kitchen they like. They are focusing on different kitchens instead of only to one. The website is also fixed so that a customer can see what the dish of the month is. Thuisbezorgd.nl doesn’t only distribute the orders but also take care of what the customer is looking for by creating a wide variety of different dishes on their site of the restaurants.

This type of strategy in the culture makes Thuisbezorgd.nl a strong company and their effective way of working a market leader in The Netherlands.

Strategy:

How does it work?

Simply by logging in with a user name and personal identity on the site. And putting meals into the shopping card. Payment is also easy and been taken care of by Ideal. Ideal is one of the most used payment channels on the internet that is being used by Dutch consumers. Thuisbezorgd.nl changed the chain of food-delivery. The old fashion way of ordering food is by using a folder and calling the order through with the restaurant. Thuisbezord.nl changed this method by putting all the options of ordering with over 1500 restaurants on one single web-site.

Join now!

How is this all possible?

First, the market, ensures that a substantial proportion of bookings made through them. After that suppliers of Catering automation with booking and delivery systems that are associated with the databases of Thuisbezorgd.nl. So that no e-mail or fax more information is needed and almost always correct. In addition, consumers can also instantly see if for example a court is temporarily not available. And of course more door to door Thuisbezorgd.nl, but other parties may then electronically transmit their orders. We get links to review systems and social networks. And then coaching food brands ...

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