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Antonios Gkekas
Business Description
 Import fresh Fruit – Vegetable from Spain to Finland
 Flexible price
 Target customer: end customer
 Head quarter: Helsinki – Finland
Headquarter-Helsinki
 Why?
 Wholesalers are located near Helsinki
 Import activities
 Easy to employ

         Fruit in    Company-
                                   Customers
          Spain       Helsinki
LOCATION OF HEADQUARTER: HELSINKI
Reason
 Capital
 Nearby wholesalers
 Potential workforce
 Distribution system
Helsinki – Capital of Finland
  The most populous and largest city
     600,000 inhabitants
     Advertise and market our company and products
    widely
  Capital of Finland
     Center of business events
    Opportunities to co-operate with international
    partners
Why Helsinki ?
 Main wholesalers located in Helsinki
    Satotukku
    Tukkutalo
    Valora Oy
 Advanced business services
 Business environtment
    Much of economic activity of the nation is carried on
     around Helsinki Harbor
    Metropolitan area with important worldwide businesses
     having their headquarters here.
Why Helsinki ?
 An important trade and business destination
  (Internationcal Trade shows: Educa
  Helsinki, ect.)
 High level of education among the labour
  force
 Helsinki is located optimally from the point of
  view of national markets as well as the markets
  of northwest Russia and the Baltic States.
 Good logistics network
Workforce in Finland
Young employees from universities and UAS
  Students from universities and
   UAS
  Universities of Applied
   Sciences:
       Acrada UAS: 2346
       Diaconia UAS: 3004
       HAGA-HELIA UAS: 10500
       Helsinki Metropolia UAS:
       16000
       Humak UAS: 1434
  Universities:
Helsinki – Capital of Finland
 Many people come to seek a job → more options for
  companies
 English is used popularly
  Most of people can speak English as well as their
  second language ( over 80% population can speak
  English)
→ advantage for international trading
Helsinki – Capital of Finland
More than 50% immigrant population in Finland lives in
 Helsinki
Many Spanish people are in Helsinki
 Spanish people with experience and skill => a good
 choice for company?

Further information: Helsinki is in top 10 for
  productivity in Europe
Challenges
 Highly operational cost (e.g maintenance or labor cost,
  etc)
 Competitiveness
 Solution: Instead of Helsinki, we have some other
  choices to place the headquarter such as: Turku,
  Tampere.
Location and Planning
                                      Sales-
                                     Marketing

                  Administrative
                                    Accounting
                     Staff


        Senior                     Administrative
       Manament
                                     Customer
                                      Service
                   Operations
                     Staff
                                    Facilities
                                   Management
TARGET MARKET - FINLAND
Reasons to choose Finland
1. The climate
2. Prices of fruits and vegetable in Finland comparing to
   those in Spain
3. Being European Union (EU) members
TARGET MARKET - FINLAND
1. The climate
   Harsh
   climate, especially in
   winter
 → lack of diversity in fruits
   and vegetable
   (Spain – better
   climate, many different
   types of fruits and
   vegetable)
 → meet the demand of
   customers in Finland
TARGET MARKET - FINLAND
2. Prices of fruits and vegetable in Finland
    comparing to those in Spain

  Fruits and vegetable grown
  ‐ in Finland-expensive
  ‐ in Spain-cheap

→ advantage to compete against domestic products
Prices of some fruits and vegetable of a
wholesaler in Spain
             Product                    Approximate weight                   Average price (Euros)
                                          per packaging
   White grape (seedless)              5 kg                                1.1
   Valencia late orange                10 kg                               0.75
   Lemon                               10 kg                               1.0
   Cucumber                            5 kg                                0.7
   Spring onion                        15 bunches                          0.55
   Broccoli                            5 kg                                1.65
   Aubergine ”purple”                  5 kg                                0.8
   Conference pears                    4 kg                                0.75
   Green pepper                        5 kg                                0.75


Source:
http://www.fruitfromspain.com/uploads/2/4/7/7/2477920/wholesale_spanish_fresh_fruit_and_vegetable_fca_madrid_prices_-
_fruitfromspain.com_-_9_th_october_2012.pdf
TARGET MARKET - FINLAND
3.Being members of EU
  Finland and Spain are in EU
 → same currency, customs tariffs, duty rate in
  import and export
 → decrease risk and barriers in exchanging
  currencies, importing and exporting goods
Target market

 Demand for fruits and vegetables is increasing
 High price of domestic products
 Lack of farmer
 Healthy lifestyle
 Lack of diversity due to climate
 Being a member of EU
Reason for the target
market, Finland
 Demand for fruit and vegetables: increasing rapidly
    Data through organic food research by Mary Allen
     Smith
    2010: turn over reaches 80 million Euros
       1/5 of Finnish household by regular organic food (17% in
        2008)
   2011: expected to 110 million Euros and so on
   1st half of 2011: 40% growth in sales of organic product
   A great demand on fruit and vegetables
 But, in comparison with other countries, the market
  share is still low (1.2%)
 And the demands excess domestic supply
 A chance to jump to the market
Reason for the target
market, Finland
   Lack of local farmers
  Finland imports most of its fruits and veggies because they do not have enough farmers
     that farm fruits and vegetables for their country

   Trend of consumption
  Finns have become more focused in recent years on leading a healthy lifestyle with more
    consumption of fruit and vegetables. Because of increasing health
    awareness, consumers prefer fresh fruit and vegetables over canned fruit and
    vegetables, because fresh products are perceived as more healthy.

     Consumption of organic food
  Although organic food is still a small niche market, consumption is increasing fast in
     almost all countries. Since the food scares that hit EU countries in the 1990s and
     2000s, many people are concerned about food safety. This factor, combined with
     increasing awareness of health, diet and nutrition, has increased interest in organic
     food products, including organic fruit and vegetables.
High price of the products
 Some typical fruits and              Suomi      Imported

  vegetable
 S-market research         Cucumber 3.35 E/kg    1.45 E/kg

 NO promoted price
                            Tomato    4.35 E/kg   1.65 E/kg



                            Apple     2.95 E/kg   2.39 E/kg


                                        1.39        0.75
                            Carrot
                                       E/pack      E/pack
Lack of diversity
 Especially in winter.
    Domestic fruits:
     Apples, plums, cherries and
     berries
    Domestic vegetables:
     Potatoes, cucumbers, tomatoes
     , lettuces, turnips and onions.

 Everything else is imported
    Apples: Italia, Poland,...
    Oranges: Spain, Turkey,..
    Bananas: Columbia, Spain,..
Lack of diversity due to Finland's
changing climate
  Fruits need light, water, nutrients, carbon
   dioxide, and warmth to grow.
  Spain is the appropriate country for
   exporting fruits and vegetables to
   Finland.
  Spain is the second largest exporter of fresh
   fruit and vegetables in the EU, accounting for
   18% of EU exports. Between 2004 and
   2008, Spain’s exports increased on average by
   2.7% annually, total €1.2 billion and 1.0 million
   tones in 2008. The main exported product
   groups in 2008 were canned olives, canned
                                                       Chart - Finland - Imports -
   tomatoes, canned mushrooms and canned               Evolution
   peaches. Spain’s exports increased in value by
   +2.7% on average per year.  New partner
TARGET MARKET - FINLAND
   Being members of EU
   Finland and Spain are EU member states
     Common currency Euro.
     Zero-rated taxes for Intra-Community Trade.
     Spain products fulfill European strict requirements for
     fruits and vegetables. ( There are already a lot of
     Spanish fruits on Finnish market-pictures)
  → decrease risk and barriers in trading.
Target customer
 Need/desire
   A kind of food  eating habit
   Different taste
   Deliver more choice for domestic customer




                         OR?
Target customer
 Demographics - Age: 18-65
   Independent income
   Free-will to purchase
   Consume large quantities
Target customer
 Life-style – Healthy
    WHO: 400g intake/day (not including potato)
    Awareness arising
Target customer
 Economic situation
    Average income and savings
    Economics recession in Finland
    Our service: reduce price and some seasonal discounts
Deciding factors
 Cultural
    Religions
    Sub-culture: “Vegetarian” or “Meat lover”




 Social
    Family members’ eating habits
    Reference groups
Deciding factors
 Personal
    Healthy lifestyle
    Stable income


 Economical
    Government interfere
        Fiscal policy
Deciding factors
 Business rivalry
    Own prestige and reputation
    Existing domestic competitors
    Substitute products
Product quality and hygiene
 EuropGAP (Good Agricultural Practices)
 Generic HACCP (Hazard Analysis and Critical Point)
 National legislation and specific requirements in
 Finland
External     Internal
 Clearness
                 - Taste
 Color
 Freshness
                 - Maturity
 Shape
                 - Nutrition
 Presentation
 Packaging
Before import
 Farms have GAP certification.
 Finding and understanding clearly special and specific
  requirements about vegetable and fruit in Finland.
 Test/ Check products carefully.
References
   http://www.foodnavigator.com/Science-
    Nutrition/Organic-fruit-market-surges-in-
    Scandinavia
   http://trade.nosis.com/en/Comex/Import-
    Export/Finland/Oil-seeds-oleaginous-fruits-
    miscellaneous-grains-seeds-fruits-industrial-
    medicinal-plants-straw-fodd/FI/12?f=I&p=A&e=G
   http://publications.theseus.fi/bitstream/handle/10
    024/44073/Hall%20Hardi.pdf?sequence=1
Importing Fruits and Vegetables from Spain to Finland

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Importing Fruits and Vegetables from Spain to Finland

  • 2. Business Description  Import fresh Fruit – Vegetable from Spain to Finland  Flexible price  Target customer: end customer  Head quarter: Helsinki – Finland
  • 3. Headquarter-Helsinki  Why? Wholesalers are located near Helsinki Import activities Easy to employ Fruit in Company- Customers Spain Helsinki
  • 5. Reason  Capital  Nearby wholesalers  Potential workforce  Distribution system
  • 6. Helsinki – Capital of Finland  The most populous and largest city  600,000 inhabitants  Advertise and market our company and products widely  Capital of Finland  Center of business events Opportunities to co-operate with international partners
  • 7. Why Helsinki ?  Main wholesalers located in Helsinki  Satotukku  Tukkutalo  Valora Oy  Advanced business services  Business environtment  Much of economic activity of the nation is carried on around Helsinki Harbor  Metropolitan area with important worldwide businesses having their headquarters here.
  • 8. Why Helsinki ?  An important trade and business destination (Internationcal Trade shows: Educa Helsinki, ect.)  High level of education among the labour force  Helsinki is located optimally from the point of view of national markets as well as the markets of northwest Russia and the Baltic States.  Good logistics network
  • 9. Workforce in Finland Young employees from universities and UAS  Students from universities and UAS  Universities of Applied Sciences: Acrada UAS: 2346 Diaconia UAS: 3004 HAGA-HELIA UAS: 10500 Helsinki Metropolia UAS: 16000 Humak UAS: 1434  Universities:
  • 10. Helsinki – Capital of Finland  Many people come to seek a job → more options for companies  English is used popularly Most of people can speak English as well as their second language ( over 80% population can speak English) → advantage for international trading
  • 11. Helsinki – Capital of Finland More than 50% immigrant population in Finland lives in Helsinki Many Spanish people are in Helsinki Spanish people with experience and skill => a good choice for company? Further information: Helsinki is in top 10 for productivity in Europe
  • 12. Challenges  Highly operational cost (e.g maintenance or labor cost, etc)  Competitiveness  Solution: Instead of Helsinki, we have some other choices to place the headquarter such as: Turku, Tampere.
  • 13. Location and Planning Sales- Marketing Administrative Accounting Staff Senior Administrative Manament Customer Service Operations Staff Facilities Management
  • 14. TARGET MARKET - FINLAND Reasons to choose Finland 1. The climate 2. Prices of fruits and vegetable in Finland comparing to those in Spain 3. Being European Union (EU) members
  • 15. TARGET MARKET - FINLAND 1. The climate Harsh climate, especially in winter → lack of diversity in fruits and vegetable (Spain – better climate, many different types of fruits and vegetable) → meet the demand of customers in Finland
  • 16. TARGET MARKET - FINLAND 2. Prices of fruits and vegetable in Finland comparing to those in Spain Fruits and vegetable grown ‐ in Finland-expensive ‐ in Spain-cheap → advantage to compete against domestic products
  • 17. Prices of some fruits and vegetable of a wholesaler in Spain Product Approximate weight Average price (Euros) per packaging White grape (seedless) 5 kg 1.1 Valencia late orange 10 kg 0.75 Lemon 10 kg 1.0 Cucumber 5 kg 0.7 Spring onion 15 bunches 0.55 Broccoli 5 kg 1.65 Aubergine ”purple” 5 kg 0.8 Conference pears 4 kg 0.75 Green pepper 5 kg 0.75 Source: http://www.fruitfromspain.com/uploads/2/4/7/7/2477920/wholesale_spanish_fresh_fruit_and_vegetable_fca_madrid_prices_- _fruitfromspain.com_-_9_th_october_2012.pdf
  • 18. TARGET MARKET - FINLAND 3.Being members of EU Finland and Spain are in EU → same currency, customs tariffs, duty rate in import and export → decrease risk and barriers in exchanging currencies, importing and exporting goods
  • 19. Target market  Demand for fruits and vegetables is increasing  High price of domestic products  Lack of farmer  Healthy lifestyle  Lack of diversity due to climate  Being a member of EU
  • 20. Reason for the target market, Finland  Demand for fruit and vegetables: increasing rapidly  Data through organic food research by Mary Allen Smith  2010: turn over reaches 80 million Euros  1/5 of Finnish household by regular organic food (17% in 2008)  2011: expected to 110 million Euros and so on  1st half of 2011: 40% growth in sales of organic product  A great demand on fruit and vegetables  But, in comparison with other countries, the market share is still low (1.2%)  And the demands excess domestic supply  A chance to jump to the market
  • 21. Reason for the target market, Finland  Lack of local farmers Finland imports most of its fruits and veggies because they do not have enough farmers that farm fruits and vegetables for their country  Trend of consumption Finns have become more focused in recent years on leading a healthy lifestyle with more consumption of fruit and vegetables. Because of increasing health awareness, consumers prefer fresh fruit and vegetables over canned fruit and vegetables, because fresh products are perceived as more healthy.  Consumption of organic food Although organic food is still a small niche market, consumption is increasing fast in almost all countries. Since the food scares that hit EU countries in the 1990s and 2000s, many people are concerned about food safety. This factor, combined with increasing awareness of health, diet and nutrition, has increased interest in organic food products, including organic fruit and vegetables.
  • 22. High price of the products  Some typical fruits and Suomi Imported vegetable  S-market research Cucumber 3.35 E/kg 1.45 E/kg  NO promoted price Tomato 4.35 E/kg 1.65 E/kg Apple 2.95 E/kg 2.39 E/kg 1.39 0.75 Carrot E/pack E/pack
  • 23. Lack of diversity  Especially in winter.  Domestic fruits: Apples, plums, cherries and berries  Domestic vegetables: Potatoes, cucumbers, tomatoes , lettuces, turnips and onions.  Everything else is imported  Apples: Italia, Poland,...  Oranges: Spain, Turkey,..  Bananas: Columbia, Spain,..
  • 24. Lack of diversity due to Finland's changing climate  Fruits need light, water, nutrients, carbon dioxide, and warmth to grow.  Spain is the appropriate country for exporting fruits and vegetables to Finland.  Spain is the second largest exporter of fresh fruit and vegetables in the EU, accounting for 18% of EU exports. Between 2004 and 2008, Spain’s exports increased on average by 2.7% annually, total €1.2 billion and 1.0 million tones in 2008. The main exported product groups in 2008 were canned olives, canned Chart - Finland - Imports - tomatoes, canned mushrooms and canned Evolution peaches. Spain’s exports increased in value by +2.7% on average per year.  New partner
  • 25. TARGET MARKET - FINLAND  Being members of EU Finland and Spain are EU member states  Common currency Euro.  Zero-rated taxes for Intra-Community Trade.  Spain products fulfill European strict requirements for fruits and vegetables. ( There are already a lot of Spanish fruits on Finnish market-pictures) → decrease risk and barriers in trading.
  • 26. Target customer  Need/desire  A kind of food  eating habit  Different taste Deliver more choice for domestic customer OR?
  • 27. Target customer  Demographics - Age: 18-65  Independent income  Free-will to purchase  Consume large quantities
  • 28. Target customer  Life-style – Healthy  WHO: 400g intake/day (not including potato)  Awareness arising
  • 29. Target customer  Economic situation  Average income and savings  Economics recession in Finland  Our service: reduce price and some seasonal discounts
  • 30. Deciding factors  Cultural  Religions  Sub-culture: “Vegetarian” or “Meat lover”  Social  Family members’ eating habits  Reference groups
  • 31. Deciding factors  Personal  Healthy lifestyle  Stable income  Economical  Government interfere  Fiscal policy
  • 32. Deciding factors  Business rivalry  Own prestige and reputation  Existing domestic competitors  Substitute products
  • 34.  EuropGAP (Good Agricultural Practices)  Generic HACCP (Hazard Analysis and Critical Point)  National legislation and specific requirements in Finland
  • 35. External Internal  Clearness - Taste  Color  Freshness - Maturity  Shape - Nutrition  Presentation  Packaging
  • 36. Before import  Farms have GAP certification.  Finding and understanding clearly special and specific requirements about vegetable and fruit in Finland.  Test/ Check products carefully.
  • 37. References  http://www.foodnavigator.com/Science- Nutrition/Organic-fruit-market-surges-in- Scandinavia  http://trade.nosis.com/en/Comex/Import- Export/Finland/Oil-seeds-oleaginous-fruits- miscellaneous-grains-seeds-fruits-industrial- medicinal-plants-straw-fodd/FI/12?f=I&p=A&e=G  http://publications.theseus.fi/bitstream/handle/10 024/44073/Hall%20Hardi.pdf?sequence=1